Gold prices fell 0.26% to ₹79,023 as markets anticipated a change in policy ahead of the new Fed interest rate announcement. However, losses were somewhat limited by better-than-expected US inflation figures, which fuelled hopes for a repeat Federal Reserve rate cut. The US manufacturing sector showed strength, with output rising 0.6% in December, beating market estimates of 0.2%. Meanwhile, rising domestic prices dampened demand for gold in India, resulting in a six-month high of $30 per ounce discount, from $17 last week.
Jewellers in India are awaiting the federal budget to provide clarity on policy changes. In contrast, gold demand in China was strong ahead of the Lunar New Year, with premiums ranging from $3 to $13 per ounce, up from a $2 discount the previous week. Singapore and Hong Kong also posted similar flat premiums, while Japan’s trades fluctuated between a $0.5 discount and a premium. Central banks continued to boost demand for gold, with global purchases reaching 53 tonnes in November. The National Bank of Poland led the way with an increase of 21 tonnes, followed by the Reserve Bank of India in second place with an increase of 8 tonnes.
