Gold prices rose 0.28% to ₹77,747 on the back of the Federal Reserve’s rate cut for 2025 amid concerns over taxation after the US election. A stronger dollar and higher Treasury yields generally weigh on gold. Following three rate cuts in 2024, the Fed is expecting two more cuts in 2025, with markets easing by 38 basis points this year.
Indian gold discounts held steady at $14 an ounce as consumer demand eased as gold prices continued to rise. In contrast, Chinese premiums rose to $4.50-$10 ahead of the Chinese New Year, indicating increased demand. Hong Kong traded at premiums of $0.20-$1.90, while Japan saw discounts of up to $0.25. India reported a dramatic reduction in gold import estimates for November, down $5 billion to $9.84 billion, narrowing the trade deficit significantly.