Weekly Gold Review: COMEX futures test five-week low, local prices slide too

COMEX Gold futures dropped sharply in the week gone by and tested a five-week low near $3120 per ounce. Demand for safe-haven assets fell due to easing global trade tensions. The metal has heavily corrected from its record highs of around $3500 per ounce. A modest bounce emerged from these levels and the counter ended just above $3200 per ounce. Indian demand trends could come into picture in near term for the Gold prices following sharp spike in retail prices. India's Gold imports came in at Rs 26499 crore in value terms in April 2025, rising around 7.60% compared to April 2024. Silver imports also spiked around 39% on year to Rs 1368 crore in the month. On a monthly basis, Gold imports slipped around 31.70% while Silver imports gained by around 32%. Gold imports value in fiscal year 2025 or FY25 rose by 30% on year while Silver imports during the same period contracted around 9.40%. Meanwhile, a sustained rise in global debt levels could support Gold over long term. International Monetary Fund or IMF stated that global public debt is expected to approach 100 percent of global GDP by the end of the decade. In other words, we would owe as much as we generate in one year. And this is worse than what we had during the pandemic, the fund noted. Governments are wrestling with tight budgets. And now with trade policy uncertainty, the fiscal trade-offs are going to be even more complicated. MCX Gold futures pulled back amid weakness in global futures and approached Rs 91600 per 10 grams mark before closing around Rs 92500 per 10 grams.

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