Gold prices rose 0.88% to close at ₹98,579 today as investors turned more cautious after a series of weak economic reports from the US. The latest jobs report (JOLTS) showed that 7.39 million jobs were added in April. While the figure was higher than expected, it still showed uncertainty in the job market.
Comments from Federal Reserve officials on the potential negative effects of trade policies, especially higher tariffs, made gold a safe-haven investment. Around the world, central banks continued to buy gold in April, but at a slower pace – only 12 tonnes, down 12% from March and below last year’s average. Poland was the biggest buyer, increasing its gold reserves to 509 tonnes – more than the European Central Bank.
However, high gold prices have dampened demand in key markets such as India. With the wedding season over, the price of gold has also led to discounts of up to $31 per ounce. In China, despite strong gold imports via Hong Kong in April, falling premiums showed weak consumer demand.
