Gold prices closed down -0.02% to 86,010 following recent developments fueled by US President Donald Trump’s tax threats and concerns over rising inflation risks. Continued geopolitical tensions between Russia and Ukraine are further boosting demand for gold. The Chinese gold market improved in January as the People’s Bank of China (PBoC) bought gold for the third consecutive month, taking total government reserves to 2,285 metric tons, or 5.9% of total foreign reserves.
In China, discounts ranged from $1 to $3 per ounce, while Indian traders offered discounts of up to $35 per ounce over the official domestic price, which was $26 last week. Swiss gold exports to China and India also suffered steep declines, falling 88% and 99% year-on-year, respectively. Citing inherently strong central bank demand, Goldman Sachs (NYSE:GS) raised its end-2025 gold price forecast to $3,100 per ounce from $2,890.
