Gold prices closed down 0.79% at $85,196 as investors worried about a strong U.S. dollar and key inflation data. Uncertainty over U.S. trade plans also weighed on the market, with the U.S. President considering imposing a 25% “reciprocal” tariff on European automobiles and postponing additional tariffs on imports from Mexico and Canada until April 2. China’s total gold imports via Hong Kong fell 44.8% in January from December due to weak demand.
However, China’s central bank increased its gold reserves for the third consecutive month, bringing its official reserves to 2,285 metric tons. Goldman Sachs raised its 2025 year-end gold price forecast to $3,100 an ounce, citing structurally higher demand from the central bank. Gold held in London vaults fell 1.7% in January, the London Bullion Market Association (LBMA) said. Demand for gold in key markets such as India and China remained weak due to record high prices. Gold exports from Switzerland to India and China fell by 88% and 99% respectively.
