Gold prices fell 0.34% to ₹85,523 after hitting a record high as investors booked profits. The decline was driven by concerns over a global trade war following the US President’s decision to impose 25% tariffs on steel and aluminium imports. Also, for the third consecutive month, China’s central bank increased its gold reserves, which totalled 73.45 million troy ounces by the end of January.
However, London’s gold reserves fell 1.7% as exports to the US increased, with gold futures trading at a significant premium to spot prices. Demand for gold jewellery in India is being spooked by record high prices, while traders offered a discount of $31 per ounce to the official domestic price. According to the World Gold Council (WGC), India’s demand for gold is expected to decline from a nine-year high of 802.8 tonnes to 700–800 metric tonnes by 2025. However, interest in ETFs, digital gold, and coins and bars continues to drive strong investment demand.
