Gold prices fell as investors turned more cautious due to rising trade tensions. However, gold still rose 0.93% to close at 96,421 on growing concerns about the economy and global politics.
The US President has threatened to impose a 25% tariff on goods coming from the European Union from June 1 if Apple does not shift iPhone production to the US. And once the new tax policy is passed, it is expected to increase the US deficit by $3 trillion over the next 10 years.
Tensions also increased in the Middle East, with fears that Israel could attack Iran’s nuclear facilities increasing the cautious mood among investors.
Despite this, demand for gold in India remained subdued. High global prices and a weak rupee led dealers to offer discounts of up to $49 per ounce. In China, gold premiums were stable at $16 to $30 per ounce, indicating that regular buyers are still interested. Japan had the lowest premiums (up to $1), while Singapore and Hong Kong had moderate premiums.
In the first quarter of 2025, global gold demand rose 1% to 1,206 metric tons. This was largely due to a 170% increase in investment demand, with more people buying gold bars and investing their money in gold-backed ETFs.
