Gold prices rose 1.45% to ₹101,204 as investors expected the US central bank to cut interest rates soon. There is an 81% chance of a rate cut in September.
Gold was also boosted by rising global tensions. The president raised import duties on goods from several countries to between 10% and 41%. Citi raised its gold price forecast to $3,500 an ounce due to the weakening US dollar and slowing US growth and inflation.
In the second quarter of 2025, global gold demand rose 3% year-on-year to 1,248.8 metric tons, mainly due to a 78% increase in investment. There was the largest inflow into physically backed gold ETFs since 2020, and demand for gold bars increased by 21%.
However, higher prices led to a 14% drop in demand for gold jewellery, particularly in China and India. Central banks also bought 21% less gold. At the same time, gold premiums varied in China, Hong Kong, Singapore and Japan.
