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Below the Quote on Gold Commentary: 25th June 2025 by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd

Gold prices held their ground in early morning trade as a tentative ceasefire between Iran and Israel dampened safe-haven demand, though a weaker dollar and bargain-hunting after bullion's decline in the previous session helped limit losses. Iran and Israel signalled a halt to their air war following U.S. President Donald Trump's public reprimand over ceasefire violations announced earlier that day. U.S. consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labor market conditions were softening against the backdrop of rising economic uncertainty because of the Trump administration's tariffs. Dollar index fell below 98 once again marking a one-week low, meanwhile USDINR fell by more than 70 paise in yesterday’s trade weighing on domestic prices. Federal Reserve Bank of Cleveland President Hammack said that she sees no pressing need to cut interest rates when there's still a lot of uncertainty what trade tariffs will do to inflation, which is still above the central bank's target. Focus now also shifts to US GDP, inflation and durables goods orders data.

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