Gold rose 1.75% to ₹98,392 as concerns over global conflicts increased and US economic reports suggested the Federal Reserve could cut interest rates. Investors favoured gold as a safe-haven asset due to rising tensions in the Middle East. At the same time, jobless claims remained high and US producer prices were lower than expected, suggesting a slowing job market.
Core inflation was steady at 2.8% in May, supporting hopes for rate cuts, while the consumer price index rose 2.4%, slightly below expectations. Uncertainty over US-China trade relations also added to investors’ concerns.
Despite the rise in gold prices, demand for gold, particularly in India, eased, where near-record prices pushed gold premiums to around $56 an ounce.
