A weaker dollar and rising trade war fears helped gold prices rise 0.43% to 85,055. The US president’s decision to impose reciprocal tariffs on countries that impose tariffs on US imports has fuelled inflation fears, which has boosted demand for gold. Meanwhile, gold reserves in London storage facilities fell 1.7% to 8,535 metric tonnes at the end of January, the London Bullion Market Association (LBMA) said.
Demand for gold in India eased. In addition, as banks diverted the metal to the US, a global supply shortage pushed up gold lease prices in India. The World Gold Council (WGC) has forecast India’s gold consumption to moderate to 700-800 metric tonnes in 2025. This is because higher prices are dampening demand for jewellery, while increasing investment in ETFs, digital gold and currencies.
