Gold prices rose 0.89% to ₹80,289 as investors awaited the Federal Reserve’s first meeting of 2025. The Federal Reserve is widely expected to keep interest rates steady after a 100 basis point cut since September, the latest sign of easing inflation. Moreover, trade-related inflation risks have eased as the US President has eased fears of economic uncertainty.
However, China’s net gold imports via Hong Kong fell 84% to 5.26 metric tonnes in December from 33.07 tonnes in November as higher prices dampened demand. Dealers in India offered their highest discounts in more than six months, hitting $38 an ounce, on speculation that the import duty regime could change in the 2019 Budget. Meanwhile, China’s central bank continued to accumulate gold, increasing reserves for the second month in December.