Gold prices fell marginally to ₹95,536 as many traders decided to book profits after recent gains. The recovery in the US dollar index after three days of decline also contributed to the small decline.
Even with the decline, the long-term outlook for gold remains strong. Concerns about the US economy, especially after Moody’s downgraded the country’s credit rating due to its $36 trillion debt – continue to support demand for gold.
In the gold market, China’s gold imports rose 73% in April to 127.5 metric tonnes, the highest in 11 months. In India, demand remained weak, with sellers offering discounts of up to $34 per ounce – more than double the previous week’s $16. In contrast, strong demand in China pushed up local premiums by $9 to $50.
Globally, demand for gold was weak in the first quarter of 2025. Investment demand increased by 170%, and total demand increased by 1% over the previous year to reach 1,206 metric tons.
