Gold prices rose 0.71% to ₹78,710 on better-than-expected US inflation data, which raised the prospect of a less restrictive monetary policy from the Federal Reserve. This led to a surprise decline in annual core consumer inflation, and the Fed’s earlier rate cuts in July than in September raised market expectations.
Global demand for gold remained strong, with central banks continuing to build up reserves. Emerging markets led the way, with Poland adding 21 tonnes in November 2024, taking its holdings to 448 tonnes, and the Reserve Bank of India adding 8 tonnes, bringing its 2024 purchases to 73 tonnes. In December, China’s central bank increased its reserves for the second consecutive month, reaching 73.29 million fine troy ounces. Meanwhile, gold premium discounts varied across major markets. Rising local prices have stifled retail demand, and gold discounts in India have widened to $17 per ounce.
