Investing.com - Financial Markets Worldwide

Gold Falls As Easing Trade Tensions Between The US And China Weigh.

ByKedia Advisory
Published 15-05-2025, 10:04 am
Gold Spot US Dollar
-1.42%
GC
-1.42%

Gold prices declined sharply by 1.48% to settle at ₹92,265, weighed down by easing trade tensions between the U.S. and China, which reduced the metal’s safe-haven appeal. The temporary reduction in tariffs by both nations for a 90-day period helped calm investor nerves over prolonged trade disruptions. Additionally, softer-than-expected U.S. inflation data, with the annual rate easing to 2.3% in April—the lowest since February 2021—reinforced expectations of a potential Federal Reserve rate cut, typically supportive for non-yielding assets like gold. Despite the price dip, global investment interest in gold remains robust.
 

The World Gold Council reported net inflows of 115 tons into gold ETFs in April, the largest in over three years and the fifth straight monthly increase, with China contributing nearly 65 tons. However, physical demand was mixed. Indian dealers were seen offering discounts up to $16/oz due to weak local demand as a weaker rupee pushed prices near record highs. Global gold demand edged up by 1% year-on-year in Q1 2025 to 1,206 metric tons, mainly driven by a 170% surge in investment demand. Bar and coin demand rose 12% in China but fell globally due to a 32% drop in coin purchases and a 21% dip in central bank buying. Jewellery demand declined 21% amid high prices.
 

Technically, gold is under long liquidation as open interest dropped 4.35% to 11,867. Immediate support lies at ₹91,635, with a further downside to ₹91,005. Resistance is seen at ₹93,280; a break above may push prices toward ₹94,295.

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