Gold Extends Gains on Fed Cut Bets; ICICI Sees India Near ₹1 Lakh

Gold prices rose for a second straight session on 1 July as traders increased wagers that the Federal Reserve will resume interest-rate cuts later this year. The most-active Comex August contract settled 1.27% higher at US$3,349.80 an ounce, helped by a softer dollar and lingering geopolitical uncertainty. Market attention is also fixed on U.S. trade negotiations ahead of the 9 July deadline for a new round of tariffs on Chinese goods.

The firmer bullion tone has reinforced bullish forecasts for key consumer markets. ICICI Bank Global Markets said domestic gold in India could climb to about ₹100,000 per 10 grams in the second half of 2025, up from the current ₹96,500–₹98,720 range. The bank cites rupee weakness and resilient investment demand, noting ₹2.92 billion of net inflows into gold exchange-traded funds in May even as jewellery demand softens and imports slipped to US$2.5 billion from US$3.1 billion a month earlier.

Globally, holdings in the SPDR Gold ETF, a proxy for investor appetite, increased to 948 tonnes on 1 July from 930 tonnes at the start of June. While a cease-fire between Israel and Iran and progress in U.S. trade talks have tempered safe-haven buying, analysts say the prospect of easier monetary policy continues to underpin prices.