Gold prices rose 1.24% to $86,113 on concerns over the US President’s tax plans. A 9% price increase is expected by the end of the year on strong central bank demand, which is why Goldman Sachs (NYSE:GS) raised its 2025 gold price forecast to $3,100 per ounce from $2,890 per ounce. Following a report on consumer prices that were higher than expected, the US Producer Price Index (PPI) report eased some inflation fears.
According to the London Bullion Market Association (LBMA), gold held in London warehouses fell 1.7% to 8,535 metric tons in January, indicating a tight supply. High gold prices in India have dampened retail demand, prompting dealers to offer discounts of up to $26 per ounce. Gold lease prices in India doubled in a month due to a supply shortage caused by international banks shifting gold to the US. In China, gold was being sold at a discount of $18 per ounce, while Japanese traders were offering discounts ranging from $6 to $0.50.
