Gold experienced a notable increase of 2.87%, closing at Rs 155,761, primarily influenced by dip buying as investors reevaluated the Federal Reserve’s policy perspective. Michael Barr indicated that rates should remain unchanged until inflation demonstrates a clear trajectory towards 2%. This perspective stands in contrast to Austan Goolsbee’s comments, which imply that rate cuts could be on the table later this year should disinflation persist.

Market participants are currently directing their attention towards the forthcoming FOMC minutes, GDP figures, and PCE data to ascertain a more definitive trajectory. Safe-haven demand experienced a degree of moderation due to the alleviation of geopolitical tensions, highlighted by reported advancements in US–Iran discussions and the continuing negotiations between Russia and Ukraine.

In physical markets, gold experienced discounts in India for the first time in almost a month, with dealers presenting offers up to $12 per ounce below official prices, as volatility dampened retail purchasing activity. Conversely, demand in China exhibited resilience in anticipation of the Lunar New Year holiday. As reported, China’s overall gold production experienced a 3.35% increase in 2025, whereas consumption saw a decline of 3.57%.

This trend indicates a reduction in jewellery demand alongside a robust appetite for investment purchases. There was a significant increase in ETF holdings and central bank reserves. The market exhibits renewed buying interest, evidenced by a 2.57% increase in open interest. Support levels are identified at Rs 153,375 and Rs 150,995, whereas resistance is noted at Rs 157,260; a breach of this threshold may aim for Rs 158,765.