Gold edged higher on Friday, supported by intensifying geopolitical tensions and a softer U.S. Dollar, following an intraday pullback to the $3,275 region. Safe-haven demand was revived by military escalations in the Russia-Ukraine conflict, the Middle East, and along the India-Pakistan border. Meanwhile, the USD’s retreat from a one-month high also lent support to bullion prices, helping snap a two-day losing streak. However, the upside remains capped by optimism surrounding US-UK and potential US-China trade developments, as well as the Federal Reserve’s hawkish pause stance.
Technically, the gold price remains below the key $3,360-$3,365 resistance zone. A sustained breakout above that could open the path to $3,400 and beyond, while near-term support lies around $3,265, with deeper support seen near $3,223 and $3,200.
In parallel, the World Gold Council’s Q1 2025 Gold Demand Trends report revealed a 1% year-on-year increase in global gold demand to 1,206 tonnes, despite record-high prices above $3,000/oz. Investment demand surged 170% y/y to 552t, driven by strong ETF inflows (226t) and robust retail buying in Asia—particularly in Thailand and China. Thailand led Southeast Asia with a 25% y/y jump in bar and coin demand, the strongest Q1 since 2019, although jewellery consumption dipped 8% due to high prices.
Central bank net purchases continued for a 16th consecutive year, with 244t added to reserves, maintaining long-term strength despite a 21% y/y dip. While jewellery demand weakened globally under price pressure, value terms showed resilience, and ETF demand is expected to remain a key driver amid ongoing global uncertainty.
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