Gold prices rose 2.17% to 97,953 as people worried about new US tariffs and global tensions. Many investors started buying gold as a safe haven. The main reason for the price increase was the US President’s plan to raise tariffs on steel and aluminum imports to 50% from June 4. At the same time, the drone attack in Ukraine made markets unstable, so more people turned to gold for safety.
In India, despite global prices rising, fewer people bought gold as prices were already high locally and the wedding season was over. Therefore, the demand for physical gold was weak. Due to this low demand, gold dealers in India offered discounts of up to $31 per ounce – less than the $49 discount they had offered the previous week. In China, demand was steady, and gold prices increased from their usual rate of $15 per ounce.
In April, Hong Kong’s gold imports from China nearly tripled compared to the previous month, reaching a year-high. This reflects strong demand. In the first quarter of 2025, global gold demand rose 1% compared to the same period last year to 1,206 metric tons. This was due to a 170% increase in investment demand. However, central banks bought less gold, with their purchases falling 21% to 243.7 tons.
