Gold steadied supported by trade concerns after the United States hiked tariffs on Chinese goods during trade talks between the two countries. Tensions in the Middle East and also the trade disputes between the United States and China are supporting gold.
The United States escalated a tariff war with China by hiking levies to 25% for $200 billion worth of Chinese goods, and Beijing said it would strike back. Adding to global anxiety, U.S. bombers arrived at a U.S. base in Qatar. The bombers have been sent to the Middle East to counter what Washington describes as threats from Iran.
Gold demand jumped this week in India due to increased retail purchases for a key festival and weddings on price corrections, while premiums in China eased as buying slowed in the world’s top consumer. Dealers were charging a premium of up to $2.5 an ounce over official domestic prices this week, up from last week’s $2.
Jewellers were making purchases to replenish inventories after brisk sales over the last few weeks. India’s gold demand is expected to rise in the June quarter from a year ago due to a higher number of auspicious days for weddings and a fall in local prices ahead of a key festival, the World Gold Council said.
Meanwhile, premiums in China fell to around $8 towards the end of the week from $12 early in the week on tepid demand. Technically market is under long liquidation as market has witnessed drop in open interest by -6% to settled at 8749, now Gold is getting support at 31789 and below same could see a test of 31675 level, And resistance is now likely to be seen at 32010, a move above could see prices testing 32117.
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