In the Indian market, 24 karat gold was priced at ₹10,135 per gram, 22 karat at ₹9,290 per gram, and 18 karat at ₹7,601 per gram, according to Goodreturns.
Tim Waterer, Chief Market Analyst at KCM Trade, said the weaker dollar enabled a moderate bounce in gold, with prices oscillating around the $3,350 an ounce level.“If the meeting in Alaska between President Trump and President Putin does not resolve anything and the war in Ukraine continues, gold could make another push towards $3,400 an ounce,” he noted.
The White House described Friday’s summit between the US and Russian leaders as “a listening exercise,” tempering hopes for an immediate ceasefire.
Inflation data fuels rate cut expectations
Data released on Tuesday (August 12) showed the US Consumer Price Index rose 0.2% in July, after a 0.3% gain in June. On a yearly basis, CPI climbed 2.7%, easing concerns over tariff-driven price pressures.
The dollar index extended losses, making gold more affordable for non-dollar holders. Markets now see a 90% probability of a September Fed rate cut, with another possible cut later in the year. Lower interest rates typically support non-yielding assets like gold.Trade sentiment improved slightly after the United States and China extended their tariff truce for 90 days, postponing additional duties. Investors are awaiting more US economic data this week, including the Producer Price Index, jobless claims, and retail sales.
Domestic market trends
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), said 24 karat gold in India recently touched ₹1 lakh per 10 grams, driven by safe-haven demand amid global uncertainties.
“Higher prices and increased purchases from jewellers boosted imports. However, according to the World Gold Council, gold consumption in India could drop to a five-year low in 2025, with jewellery demand falling significantly,” she added.
Investment demand has partly offset the decline.
Analysts expect gold to trade in a range in the near term, with upside potential if central bank buying continues and global risks persist.
Technical outlook
Rahul Kalantri, VP Commodities at Mehta Equities, pegged gold support levels at $3,338–$3,320 an ounce and resistance at $3,370–$3,385 an ounce. In rupee terms, gold support is seen at ₹99,810–₹99,450 per 10 grams and resistance at ₹1,00,750–₹1,00,980 per 10 grams.
–With Reuters inputs
