Gold prices experienced a significant increase, closing up by 2.28% at Rs 156,341, driven by ongoing geopolitical uncertainties, a weaker U.S. dollar, and rising anticipations of interest rate reductions by the Federal Reserve. Despite the limitations on gains following U.S. President Donald Trump’s softened position on Greenland and his withdrawal from suggested tariff threats against Europe, the fundamental demand for safe-haven assets persisted.
The persistent ambiguity surrounding the EU–US trade agreement, along with a selloff in Japanese government bonds prompted by fiscal apprehensions, has sustained investor interest in gold. The medium- to long-term outlook for bullion is fundamentally positive. Goldman Sachs has adjusted its end-2026 gold price forecast to $5,400 per ounce, underscoring the ongoing trend of private-sector diversification into gold.
Other global banks reflected a positive outlook, with Commerzbank, HSBC, and UBS forecasting gold prices in the $4,800–$5,000 range through 2026, influenced by geopolitical risks, increasing global debt, and pressure on the U.S. dollar. Central bank demand persisted as a fundamental support, driven by ongoing acquisitions from China and Poland, with gold reserves in London vaults increasing by 2.24% month-on-month to 9,106 tons.
From a technical perspective, the market is experiencing short covering, evidenced by a 6.49% decrease in open interest to 11,402, alongside a price increase of Rs 3,479. Gold finds support at Rs 151,055; a decline beneath this level may challenge Rs 145,760. On the upside, resistance is observed at Rs 159,365, with a movement above this level potentially paving the way toward Rs 162,380.