Gold prices rose 0.12% to ₹95,389 on mixed economic news from the US and strong investor sentiment. The small increase came as investors looked at fresh US data and comments from a White House adviser, with the revised data showing the US economy shrank by 0.2% in the first quarter of 2025, better than the previous estimate of -0.3% but still marking the first decline in three years. Unemployment claims also rose to 240,000, and current claims hit their highest level since 2021, showing signs of a weakening job market.
The Federal Reserve’s May meeting notes indicated that they are cautious and may pause interest rate hikes. This is a move that is generally supportive of gold prices. Despite a 170% increase in investment in gold over the past year, global demand for gold jewellery fell 21% to 380.3 tonnes due to higher prices. Central banks also bought less gold, with purchases falling 21% to 243.7 tonnes. In India, demand was subdued due to higher prices and a weak rupee, with dealers offering discounts of up to $49 per ounce.
