GOLD PRICES INCREASED AS TRADERS WAITED FOR U.S. INFLATION DATA.

Price Increase:  Gold prices rose by 1.21% to close at ₹70,738, driven by safe-haven inflows as investors awaited U.S. inflation data that could influence the Federal Reserve's interest rate outlook.

Fed Rate Cut Speculation:  Fed Governor Michelle Bowman hinted at progress on inflation, leading markets to price in a 49% chance of a 50 basis point rate cut in September.

Indian Gold Demand:  In India, gold demand slightly increased due to a price correction, although market volatility caused some buyers to delay their purchases.

Geopolitical Tensions:  Geopolitical concerns, particularly Russia's evacuation of civilians near Ukraine amid increased military activity, further boosted gold's appeal as a safe-haven asset.

Chinese Market Activity:  In China, gold premiums firmed, with dealers charging up to $9 an ounce over official domestic prices, compared to $7 last week, reflecting rising interest in gold bars as a safe-haven asset.

China's Central Bank:  China's central bank did not purchase gold for the third consecutive month in July, despite the increased demand for gold bars.

Other Asian Markets: In other Asian markets, gold was sold at par to a $1.25 premium per ounce in Singapore and between a $0.5 discount and a $2 premium in Hong Kong.

Indian Gold Demand Decline:  The World Gold Council reported a 5% year-on-year decline in India's gold demand for the June quarter, though demand is expected to improve in the second half of 2024.

Demand Outlook in India:  India's gold demand is expected to rise in the second half of 2024, driven by a reduction in import taxes and favorable monsoon rains ahead of the festival season.