Gold prices slipped by 0.2% to 96,704 per 10 grams, as traders booked profits following cooler-than-expected U.S. inflation data, APA reports citing investing.com.
May’s annual CPI came in at 2.4%, slightly lower than the forecasted 2.5%, while core inflation remained steady at 2.8%. These figures reinforced expectations that the U.S. Federal Reserve could initiate rate cuts as early as September, softening the dollar and U.S. yields — traditionally bullish for gold, though profit-booking capped gains. In parallel, U.S.-China trade tensions eased somewhat, with both nations announcing a framework to reinstate their trade truce and ease China’s rare earth export restrictions. However, broader market uncertainty persisted as a U.S. federal court allowed the continuation of sweeping tariffs, pending a final ruling.
Domestically, gold demand weakened due to elevated prices. Indian dealers were compelled to widen discounts up to $56 per ounce — the highest in over a month — as record-high domestic prices dented retail interest. In contrast, premiums in China remained firm between $10–$14, reflecting stronger localized demand. Global gold demand rose 1% year-on-year to 1,206 metric tons in Q1 2025, buoyed by a 170% spike in investment inflows into ETFs and bar demand, despite a 21% drop in jewellery consumption and 21% decline in central bank purchases.
Gold is under long liquidation, with open interest down 1.24% to 13,012 contracts. Key support lies at 96,325, below which prices may test 95,945. Resistance is pegged at 97,370, and a break above could trigger a move toward 98,035.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on Facebook
Follow us on Twitter
