Gold prices rose 1.19% to ₹83,283 as global central banks moved towards looser monetary policies, fueling safe-haven demand. The U.S. imposed tariffs on China, Canada, and Mexico, raising concerns over global economic growth. Markets expect the Federal Reserve to deliver two rate cuts this year, while the Bank of Canada cut its key rate and ended quantitative tightening. The ECB, Swedish Riksbank, PBoC, and RBI also signaled easier policies, boosting market liquidity and gold’s appeal. Speculative activity saw COMEX net long positions decline by 3,766 contracts to 230,592, though deliveries to COMEX warehouses hit 12.9 million troy ounces, the highest since July 2022.
In India, gold demand remained weak due to record-high prices, with dealers offering a $35 discount per ounce compared to last week’s $38 discount. Trading in China and Hong Kong was muted due to the Lunar New Year holiday, and Swiss gold exports to China plunged 74% in December. Central banks continued to accumulate gold, with emerging markets driving demand. Poland increased its gold reserves by 21 tonnes in November, bringing total holdings to 448 tonnes. The RBI added 8 tonnes in November, lifting its 2024 purchases to 73 tonnes. China expanded its gold reserves for the second consecutive month, reaching 73.29 million fine troy ounces in December.
Technically, gold remains in a fresh buying phase, with open interest rising 4.19% to 16,951 contracts. Support is at ₹82,190, with a break below testing ₹81,095. Resistance is at ₹84,050, and a move above could push prices towards ₹84,815.