Gold prices closed up 0.26% at 85,874 as market attention continued on the US President’s tax measures that have fueled fears of a looming trade war. India’s gold imports are expected to fall by a staggering 85% in February from a year earlier, hitting their lowest level in 20 years as a result of ongoing trade tensions. Hong Kong’s gold imports from China also fell significantly by 44.8% in January. The central bank increased its gold reserves for the third consecutive month to 2,285 tonnes.
Due to high prices, demand for gold remained sluggish in China and India, leading to market discounts in both the top users. Swiss gold exports to China and India also fell sharply as consumer demand remained subdued. On the other hand, investment demand in India is expected to remain strong, with interest in bullion, digital gold and gold exchange-traded funds (ETFs) growing.
