Gold prices undergoing short-term correction, prices in $3,050–$3,250 per ounce range in Q2: Report

Gold prices are expected to fluctuate between $3,050 and $3,250 per ounce in the second quarter of 2025, according to a report by ICICI Bank Global Markets, while suggesting a short-term correction with declining prices.After rising nearly 25 per cent during January to April 2025, gold prices have declined around 4 per cent over the past fortnight. The pullback reflects easing concerns over global trade conflicts and reduced safe-haven demand, following the 90-day tariff relief between the US and China.Data from the World Gold Council (WGC) highlights strong investment demand in the first quarter of 2025, with a 170 per cent year-on-year increase. This surge was largely driven by investor uncertainty surrounding the Trump administration’s policies and ongoing trade disputes. However, improving diplomatic ties have since tempered market concerns, contributing to the recent price moderation.The report also notes that the slowdown in central bank gold purchases appears to be temporary. Meanwhile, elevated prices have subdued jewellery demand, a trend likely to persist in the near term. “We would not rule out the prospect of a mild correction setting in place in the near term, particularly if the US is able to move forward with making trade deals with the rest of the world,” the report stated as quoted by news agency ANI.In the Indian market, MCX gold prices stood at Rs 92,480 per 10 grams on Saturday. Domestic prices have remained steady, mirroring global weakness and benefiting slightly from the appreciation of the Indian rupee against the US dollar.Gold imports have also moderated, with April imports at USD 3.1 billion compared to USD 4.5 billion in March. This decline aligns with reduced jewellery demand due to higher prices.Going forward, the ICICI Bank report expects Indian gold prices to maintain an upward trajectory in the long term, ranging between Rs 92,500 and Rs 94,500 per 10 grams in the second quarter of 2025, with potential to reach Rs 96,000 to Rs 98,000 per 10 grams in the latter half of the year.