Precious Metals Preview: Gold bounces above $4300 per ounce in Asia

Gold prices rebounded sharply to trade above $4,300 per ounce today after President Donald Trump signaled that a peace agreement with Iran could be reached soon. The recovery followed a steep selloff last week that had dragged global gold prices to a seven-month low near $4000 per ounce in the previous session. Notably, the decline was far more pronounced in international markets than in India. While international gold prices tumbled to a seven-month low, the decline in the domestic market was notably less severe. Meanwhile, Gold Exchange Traded Funds (ETFs) in India witnessed net outflows of Rs 725 crore in May, ending a 12-month streak of positive inflows, according to data released by the Association of Mutual Funds in India (AMFI). The sharp reversal marks a significant change from April, when Gold ETFs attracted net inflows of Rs 3,040 crore. The outflow comes after a strong rally in domestic gold prices this year, with investors appearing to book profits following substantial gains in the yellow metal.

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