Gold experienced a rally of 1.5%, concluding at Rs 162,104, bolstered by a resurgence in safe-haven demand due to the prevailing uncertainty surrounding U.S. tariff policy and escalating tensions between the U.S. and Iran. The United States has initiated a provisional 10% global import tariff, which is expected to escalate to 15% for specific nations, thereby intensifying trade-related apprehensions. Meanwhile, U.S. jobless claims experienced a modest increase, while the unemployment rate held steady in February. Demand indicators originating from China exhibited considerable strength.
In January, net gold imports through Hong Kong experienced a significant increase of 68.7% month-on-month, reaching a total of 20.585 tons. Physical gold was observed trading at premiums of $12–$13 per ounce in China, indicative of robust buying interest following the holiday period. The People’s Bank of China has continued its gold acquisition for the 15th consecutive month.
Conversely, Indian dealers presented significant discounts reaching as much as $65 per ounce, as elevated prices suppressed demand. China’s comprehensive gold statistics revealed a variety of trends. Total consumption decreased by 3.57% in 2025, driven by a significant decline in jewellery demand, whereas bar and coin investment experienced a notable increase of 35.1%. There was a notable increase in ETF holdings alongside a substantial rise in central bank reserves.
Gold is currently experiencing renewed buying interest, as evidenced by a 7.11% increase in open interest, reaching 8,316 contracts. Immediate support is identified at Rs 160,420, while resistance is noted at Rs 163,195. A breakout above this level may propel prices toward Rs 164,280.