Gold prices fell 0.78% to 92,441 on progress in US-China trade talks. The US cut tariffs on small Chinese imports and announced a 90-day pause in trade tensions with China. The measures reduced global uncertainty, making gold a “safe haven” investment.
However, expectations that the US Federal Reserve may cut interest rates later this year – possibly starting in September – due to weak economic data and low inflation are expected to provide some support to gold prices.
The decline in prices led to people buying more gold in key Asian markets. In India, dealers offered discounts of up to $34 per ounce, compared to $16 a week ago. In Hong Kong and Singapore, gold was selling at the same price as global markets or with a small premium of up to $2.50.
According to the World Gold Council, global gold demand rose 1% to 1,206 metric tons in the first quarter of 2025, as investment in gold bars and ETFs rose 170%. In China, demand for gold bars and coins rose 12% to 124.2 tons,
If gold falls below 91,520, it could fall further to 90,600. And if the price rises with strong momentum, it could reach 94,470.
