Gold prices rose 0.62% to 86,686 as trade tensions escalated. Demand for gold also rose due to tariffs imposed by the European Union and Canada on US imports. Markets expect the Federal Reserve to keep rates unchanged at its meeting next week, giving room for more dovish economic forecasts.
China’s gold reserves rose for the fourth consecutive month, reaching 73.61 million fine troy ounces in February. Demand for gold in India remains subdued due to domestic pricing. Despite rising investment interest in ETFs, digital gold and currencies, the World Gold Council has forecast India’s gold consumption will fall to 700-800 tonnes from last year’s nine-year high of 802.8 tonnes.
