A strong dollar pushed gold down 0.15% to 84,444, although demand for safe-haven assets remained steady in the face of economic uncertainty and geopolitical tensions. Expectations for two interest rate cuts in 2024 were reinforced by weaker-than-expected US services sector data, in line with the latest FOMC projections. Gold’s appeal as a safe-haven asset has increased after geopolitical fears increased due to the US President’s tariff threats, the possibility of US power over Gaza and renewed interest in the Iran nuclear deal.
Gold prices also rose on concerns about global economic growth caused by the trade dispute between the US and China. Silver prices in Japan were at a $3.5 discount to a $1 premium, and the World Gold Council (WGC) has forecast India’s gold demand to be between 700 and 800 metric tonnes in 2025, a smaller amount than the country’s nine-year high of 802.8 metric tonnes last year. While jewellery demand has eased, demand is still high, especially for ETFs, digital gold and investments such as coins and bars,
