05-Apr-2025 13:15

Gold slumped in the week gone by, sliding heavily in tune with the broad trends in commodities. Heavy volatility was seen in the metal and Gold prices dipped below $3100 per ounce on Friday as global markets reeled from tariff-fueled turmoil. The sell-off came despite gold being spared from US President Donald Trump's sweeping import duties, which triggered retaliatory threats and sparked fears of a global economic slowdown. COMEX Gold lost heavily from its record high near $3200 per ounce and recorded a more than 2% slide on 3rd April 2025. The counter ended around $3050 per ounce, nearing one week low and witnessing a tumble after recording a more than 10% spike in March. Gold could witness some support at the lower end as falling US treasury yields and excellent central bank buying could cushion the loss. World Gold Council or WGC stated in a latest update that central banks reported 24 tonnes (t) net purchases in the second month of the year. The National Bank of Poland led net purchases, adding 29t to its gold reserves, making February its 11th consecutive month of net buying. The People's Bank of China, the Central Bank of the Republic of Turkey, the Central Bank of Jordan, the Czech National Bank and the Qatar Central Bank also reported net purchases in February. Demand for gold from central bankers continues, with data available for February showing reported global central bank gold reserves rising by 24t. Meanwhile, MCX Gold futures fell in tune with global prices, ending the week around Rs 88100 per 10 grams mark. Prices have slumped from a record high above Rs 91400 per 10 grams.

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