Gold prices extended losses, settling 1.67% lower at 95,470, as easing geopolitical risks and improved global trade sentiment dampened the metal’s safe-haven appeal. The breakthrough US-China trade deal, finalizing the Geneva consensus, is a major factor behind the reduced risk premium. The agreement includes China approving export applications for controlled goods and the US lifting various trade restrictions, while the White House hinted at flexibility over tariff deadlines, further lowering uncertainty and pressuring bullion prices. On the monetary side, investors continue to gauge the Fed’s rate outlook amid expectations that President Trump could nominate a dovish Fed Chair by September or October, potentially favoring lower interest rates to support economic growth.
In the physical market, India’s gold demand stayed muted even after prices corrected. Discounts narrowed to $18/oz, down from $27, as buyers held back for deeper corrections. Meanwhile, premiums in China rose to $12–$14/oz, up from last week’s $10, signaling resilient demand there. Globally, Q1 2025 gold demand rose 1% YoY to 1,206 metric tons, driven by a 170% surge in investment demand, although jewelry demand slumped 21% due to high prices. Central bank purchases also fell 21%, highlighting a mixed fundamental picture.
Technically, gold remains under fresh selling, with open interest up 10.09% to 14,897 lots. Support lies at 94,780, with a break lower potentially testing 94,090. Resistance is at 96,330, and a move above could lift prices towards 97,190.
