Gold prices rose 0.59% to ₹97,788 on the back of the latest US economic data and the president’s trade policy speech. According to the CME FedWatch tool, the probability of a rate cut in September is 59.9%, while the July meeting is expected to be in the range of 4.25%–4.50%.
Globally, central banks continued their bullion buying, with a total of 20 tonnes of gold being bought in May. Kazakhstan, Turkey, Poland and Singapore were the leaders. This reflects the continued interest of central banks amid global economic stability. But in India, the discount on gold has narrowed to $8, from the wide range seen in the past week, due to a local supply crunch. In China, gold was sold at a premium of $10 to $25 above international spot prices, reflecting firm demand from dealers despite import restrictions.
