Following the record high, gold prices eased 0.14% to close at ₹88,602 on profit booking. With two rate cuts expected in 2025, the US Federal Reserve decided to keep interest rates unchanged at 4.25–4.5%. At the same time, economic growth has slowed and inflation is rising. China’s official gold reserves rose to 2,290 tonnes, or 5.9% of total foreign exchange reserves.
As China’s economy improves, demand for jewellery is also expected to increase. Demand in India has surged, leading to the biggest decline in eight months. As a result, prices have fallen by $10 to $21 an ounce this week to $39. Gold imports are expected to fall by 85% in February, the lowest in 20 years. The World Gold Council predicts that consumption will be between 700 and 800 tons in 2025, although investment demand (ETFs, digital gold, coins and bars) is still strong.
