Gold prices rose 0.2% to ₹86,184 on a weaker dollar and US trade tensions. Gold’s appeal was further bolstered by US economic data, which pointed to a slowdown in business activity and a decline in consumer confidence. Physical gold consumption in China and India remained weak on the back of record prices, leading to a slowdown in global demand.
The central bank bought gold for the third consecutive month in January, boosting its reserves to 2,285 tonnes, on the back of improved domestic gold demand. ETF flows also turned negative. In India, gold consumption is expected to fall to a nine-year low of 802.8 tonnes in 2025, largely due to higher prices weighing on jewellery demand. However, investment demand remains strong, with interest in gold ETFs, digital gold and bars growing. Discounts on gold in India widened, reaching $35 per ounce, while in China, there were discounts ranging from $1-$3 per ounce. Gold exports from Switzerland to India and China fell significantly, reflecting weak physical demand.
