Gold prices slipped by 0.91% yesterday, settling at 99,417, pressured by easing safe-haven demand following a string of new trade deals that lifted investor sentiment. President Trump’s announcement of a significant trade agreement with Japan, including lower-than-expected reciprocal tariffs of 15% instead of the threatened 25%, boosted risk appetite and overshadowed gold’s appeal as a hedge. Similar agreements with the Philippines and Indonesia further dampened demand for bullion, although uncertainty persists with negotiations with the EU and other key partners still deadlocked. Meanwhile, market focus is shifting to next week’s Federal Reserve meeting, where the central bank is widely expected to keep rates unchanged, with traders now eyeing potential rate cuts later in October.
On the physical side, Swiss gold exports rose sharply by 44% month-on-month in June, driven by increased shipments to the UK, which received 83.8 metric tons — the highest since August 2019 — reflecting robust vault demand in London. Despite this, India’s domestic gold demand remained weak as near-record prices discouraged retail buyers, forcing dealers to widen discounts to $10 an ounce over official prices compared to $8 previously. India’s gold imports in June plunged 40% year-on-year to 21 tons, the lowest in more than two years.
Technically, the market is under long liquidation as open interest dropped by 16.71% while prices slipped by 912 rupees. Gold now finds support at 98,915, with a break below exposing 98,410, while resistance is likely at 100,240; a move above this could open the door to test 101,060.
