Gold prices in India fell on Tuesday, with the price per gram at 8,205.23 Indian Rupees (INR), down from 8,238.38 INR the previous day. The price per tola decreased to 95,704.90 INR from 96,090.80 INR.

Current prices for gold in various units are as follows: 1 gram at 8,205.23 INR, 10 grams at 82,053.46 INR, and a troy ounce at 255,209.80 INR. Prices are updated daily based on market conditions.

Central banks, particularly from emerging economies, have been increasing their gold reserves, with a record addition of 1,136 tonnes in 2022. Various factors influence gold prices, including geopolitical instability, interest rates, and the performance of the US Dollar.

The drop in gold prices this Tuesday, though not drastic, does reflect the overall pressure on the market. A gram of gold now sits at 8,205.23 INR, lower than Monday’s 8,238.38 INR, while a tola follows suit, moving from 96,090.80 INR to 95,704.90 INR. This is the result of several forces at play, ones that those trading derivatives will need to keep in mind in the coming weeks.

We are seeing central banks, particularly those from emerging markets, actively increasing their gold reserves. This accumulation has not been minor—1,136 tonnes were added in 2022 alone. This matters because it introduces a consistent source of demand, underpinning prices even when other market forces apply downward pressure. Yet, traders cannot rely solely on this trend.

Geopolitics remains one of the larger factors driving prices. Tensions between major economies and ongoing conflicts create moments of sharp upward movement. If these geopolitical risks continue, gold will likely see more periods of strength, but the timing of such surges is never predictable. Traders should remain aware of any shifts in international relations that could alter investor sentiment. Staying ahead of such movements could provide an edge.

Then there’s the role of interest rates. When rates rise, holding gold—an asset that generates no yield—becomes less appealing. This puts downward pressure on its price. If inflation data or central bank policy hints at tighter monetary conditions, gold could experience further declines, creating trading opportunities. But when conditions soften and expectations turn towards rate cuts, we could see a reversal.

The US Dollar’s strength also plays a part. A stronger dollar typically dampens demand for gold, making it more expensive for those holding other currencies. If the dollar remains strong, gold prices may stay subdued, but any signs of weakness in the greenback might support a recovery.

With prices updated daily to reflect market conditions, short-term price movements will remain fluid. This shouldn’t come as a surprise, given the multiple forces shaping the market. As traders, it will be necessary to track all these drivers—geopolitical developments, interest rate expectations, and currency fluctuations. Each one could shift price action in the days ahead.

Trump expressed a desire for the Keystone XL pipeline to be constructed, urging the company responsible to return to the United States for this purpose.

He indicated that easy approvals could facilitate an almost immediate start to the project.

Furthermore, he mentioned that if the original company is unwilling to proceed, an alternative pipeline company could take on the project.

Trump reiterated his stance on the Keystone XL pipeline in his recent social media post.

Donald’s statement reaffirms his long-standing interest in seeing Keystone XL built, emphasising that approvals would not be an obstacle should the project be revived. By encouraging the company to return and highlighting the ease of restarting construction, he suggests a more accommodating regulatory approach under his leadership. If the original developer hesitates, he is open to another firm stepping in to take over.

This stance signals a potential shift in expectations for those tracking energy markets. Policy direction, or at least sentiment from influential figures, plays a role in shaping industry confidence. Even the notion of approvals becoming easier can alter forward-looking assessments. Whenever a high-profile figure speaks about a project that was previously halted, discussions tend to follow. Questions arise about feasibility, financing, and whether market conditions align with renewed interest.

Near-term considerations will focus on how this affects sentiment surrounding domestic energy infrastructure. Conversations may emerge around what logistical challenges a new or returning firm would face. Infrastructure development does not resume overnight, even with a friendlier policy backdrop. Potential obstacles such as securing materials, workforce availability, and state-level requirements remain part of the broader equation.

There is also the matter of competition. If alternative firms sense an opportunity, discussions could follow about how realistic it is for another player to step in. Those watching pipeline developments will recognise that financing, permits, and long-term contracts are not arranged instantaneously. Even with a smoother regulatory setting, market conditions remain central.

One must consider how energy markets react to such statements. If infrastructure concerns ease, expectations around supply can shift. Any suggestion that an abandoned project could be revived may lead to fresh speculation on transport capacity. Those following this space will likely keep a close eye on whether industry participants acknowledge or dismiss what Donald has put forward.

From a broader perspective, infrastructure expansion—or even the perception that it might return—often leads to adjustments in outlooks. Some will re-evaluate existing positions, while others will look for concrete developments before acting. It remains to be seen whether statements alone translate into actual movement. However, when a matter this prominent resurfaces, it does not go unnoticed.

The GBP/USD pair is currently operating within an ascending channel, trading around 1.2630. Immediate resistance is noted at 1.2690, with primary support identified at the nine-day EMA of 1.2597.

The pair shows a bullish trend, supported by the 14-day Relative Strength Index (RSI) above the 50 mark. This suggests a robust short-term price momentum, as the pair stays above the nine- and 14-day Exponential Moving Averages (EMAs).

If the pair surpasses 1.2811, it could reach the upper boundary of the channel at 1.2960. Conversely, a drop below the nine-day EMA may indicate a weakness, bringing the price closer to 1.2490.

The British Pound has also demonstrated strength against other major currencies, particularly the Japanese Yen.

From what we see, the pound is maintaining an upward trend, with price action hinting at sustained momentum. The fact that it remains within this ascending range tells us that buyers are still in control, at least for now. The resistance at 1.2690 is a key level to watch, as breaking beyond this would suggest confidence among traders, potentially setting the stage for a push towards 1.2811. If that hurdle is cleared, there’s little in the way before the upper boundary near 1.2960.

Looking at the nine-day EMA at 1.2597, this is the first test of the trend’s strength. Holding above this line signals resilience, while dipping beneath it would be an early warning of fading momentum. Should that happen, attention would need to shift towards 1.2490, which stands as the next possible stopping point.

Technical indicators are still giving the edge to the buyers. The RSI sitting above 50 points to a continued bullish bias, reinforcing what we observe in price behaviour. The short-term EMAs are acting as a guide, keeping the pair propped up, and offering levels that traders can use to measure shifts in sentiment.

Beyond its performance against the US dollar, sterling has also been proving itself elsewhere, particularly against the yen. This hints at underlying strength that isn’t isolated to a single pairing, suggesting broader support in favour of the pound.

Over the coming weeks, holding above these EMAs should keep traders leaning towards the buy side, but any move below the nine-day EMA could force a reassessment. Watching for a test of resistance, alongside how the pair behaves near support markers, will be key in determining whether this momentum holds or starts to fade. All of this points to a market where traders should stay agile and ready to adjust based on where price action takes us next.

The Bank of Korea has reduced its benchmark interest rate by 25 basis points to 2.75%, down from 3%.

Future forecasts indicate a GDP growth of 1.5% for 2025 and 1.8% for 2026.

Inflation predictions remain consistent, with a forecasted rate of 1.9% for both 2025 and 2026.

Further updates are expected.

This decision to lower rates suggests that policymakers are prioritising economic stimulation. A reduction of 25 basis points, bringing the benchmark rate to 2.75%, likely signals an effort to support borrowing and investment. The move could be a reaction to slower growth projections, with GDP expected to expand by only 1.5% next year and 1.8% the year after. These figures indicate that demand-side pressures remain subdued, which aligns with inflation projections holding firm at 1.9% over the same period.

Given the latest data, short-term yield expectations may require reassessment. A lower benchmark rate typically exerts downward pressure on bond yields, affecting pricing across various instruments. In environments like this, rate-sensitive assets tend to gain appeal, while currency valuations may shift depending on external demand and capital flows. Stability in inflation forecasts provides some clarity, though real interest rates remain a key variable when assessing forward-looking positions.

Beyond immediate adjustments, the direction of future policy moves becomes an essential factor. If growth remains muted, additional cuts could still be on the table, depending on how inflation trends respond. Conversely, should external conditions change, tightening cannot be dismissed outright. Those engaged in rate-driven strategies must weigh both possibilities while watching for any signs of divergence from the Bank of Korea’s stated outlook.

Further policy decisions will depend on upcoming macroeconomic data. Inflation staying at projected levels suggests controlled pricing pressures, but an unexpected rise in external costs could challenge this stability. Trade balances, employment figures, and global central bank actions will further shape expectations in the weeks ahead.

Bank of Korea (BoK) Governor Rhee Chang-yong outlined the factors behind the recent interest rate cut during a post-policy meeting. The BoK unanimously decided to lower the policy rate by 25 basis points to 2.75%.

The bank also decreased interest rates for its special loan programme. Currently, four board members suggest maintaining rates for three months, while two believe further cuts are possible. The BoK revised its growth forecast down to 1.5% from 1.9%, keeping inflation expectations at 1.9% for this year and the next.

Consumer sentiment has worsened, and the construction sector shows weak performance. The US Dollar-Won exchange rate reflected market reactions, initially testing support at 1,428 before recovering to 1,429.93.

Rhee highlighted several reasons for the interest rate reduction, with economic weakness being a primary concern. The decision to lower rates was unanimous, reinforcing the view that policymakers see downside risks outweighing inflation pressures for now. By also cutting interest rates on the special loan programme, the central bank aims to support borrowing activity and ease financial conditions further.

Among the board members, there is a split in expectations for the coming months. Most prefer to keep rates steady in the short term, suggesting a wait-and-see approach to assess the effects of this adjustment. However, two believe additional rate reductions could be needed, which signals a possible divergence in views if data worsens. Gross domestic product forecasts have been trimmed, and with consumer sentiment declining already, concerns around domestic demand persist. Inflation, meanwhile, is expected to remain unchanged from previous estimates, which might give the bank some room to manoeuvre.

There are also broader implications for markets. The reaction in the foreign exchange market was swift, with the Dollar-Won pair testing a key support level before bouncing back. This suggests traders initially anticipated a weaker currency following the rate cut but later reassessed the impact. If bond yields adjust downward in response to lower borrowing costs, funds could shift accordingly.

For derivative traders, this shift in policy provides both new opportunities and risks. With rate expectations now adjusted, it becomes necessary to watch for incoming economic data that could influence the next move. If further cuts become a stronger possibility, yield curves may reflect rising expectations of a looser stance. On the other hand, if stability holds and inflation ticks higher, pricing may shift in a different direction.

With construction showing further softness and consumer confidence weakening, market positioning may tilt towards safer assets in the near term. However, should external factors such as central bank actions elsewhere influence capital flows, volatility could persist.

In coming weeks, watching for signals from policymakers will be important. Should further divisions emerge among board members, pricing in fixed-income markets could adjust accordingly. Additionally, movements in the exchange rate will reflect both domestic policy shifts and external market forces, which remain key to short-term positioning.

The USD/JPY exchange rate has risen above 150.00. Despite a lack of new developments or data contributing to the yen’s decline, the currency remains volatile.

Recent data, such as Japan’s Producer Price Index (PPI) Services for January, showed an increase of 3.1% year-on-year, matching expectations. Nevertheless, the dollar is encountering resistance nearby at around 150.50.

This movement suggests traders are closely monitoring the yen’s behaviour, with attention on potential interventions. Authorities in Japan have remained cautious, avoiding direct confirmation of any market actions, though history suggests they may step in if volatility worsens. The previous instances of intervention occurred when the exchange rate moved further beyond psychological thresholds, though timing remains unpredictable.

Although the dollar is currently facing difficulty surpassing 150.50, sustained pressure could prompt a breakout. Market participants will be watching whether the pair consolidates at these levels or experiences a pullback. If the dollar weakens, it may trigger a sharper yen recovery; however, if support holds, upward momentum could persist.

Shifting to external factors, US economic indicators continue to influence sentiment. Any adjustment in expectations regarding Federal Reserve policy could sway the direction of the pair, with inflation data and labour market reports playing a role. At the same time, shifts in risk appetite, particularly related to bond yields, could affect demand for the yen. Safe-haven flows become relevant if global uncertainty rises, making rapid moves in the exchange rate more likely.

On Japan’s side, the Bank of Japan’s stance remains an area of speculation. Officials have maintained accommodative policy settings, but discussions around a future exit persist. Traders are aware that even small adjustments in rhetoric could impact positioning, particularly given the currency’s sensitivity to interest rate expectations.

With these elements in play, we see a scenario where sudden changes in sentiment could lead to sharp price movements. The inability of the pair to break decisively in one direction signals hesitation, though prolonged pressure could force a reassessment. Watching key levels, central bank signals, and broader market reactions will be essential in gauging near-term positioning shifts.

The Bank of Korea (BOK) has maintained its interest rate at 2.75%, in line with forecasts. This decision reflects current economic conditions and aims to balance growth and inflation.

In the currency markets, the EUR/USD exchange rate is moving towards 1.0500, aided by a weakening US Dollar amidst positive risk sentiment. GBP/USD remains steady above 1.2600, supported by similar dollar weakness, while attention shifts to upcoming economic data.

Gold prices are currently lower than recent highs as traders take profits amidst concerns over tariffs. Meanwhile, supply distribution indicates that Shiba Inu holders have sold 61.5 billion tokens recently.

The central bank’s decision to keep rates unchanged at 2.75% signals that policymakers are treading carefully between fostering economic expansion and managing rising prices. Given that many had expected this outcome, the market reaction has been relatively subdued. However, as we assess the weeks ahead, traders should pay close attention to any indications of a shift in stance, particularly if inflation data or global growth projections spark a need for adjustments.

On the currency front, the move towards 1.0500 in EUR/USD has been largely driven by the ongoing softness in the greenback. With sentiment favouring riskier assets, traders are positioning themselves accordingly. Sterling, holding above 1.2600, benefits from similar conditions. The real question will be whether upcoming data releases support this positioning or force traders to reassess. An unexpected tilt in employment figures or economic growth numbers could easily alter momentum.

Gold’s battle to maintain higher levels appears to be a combination of profit-taking and broader concerns over potential trade tensions. Given that tariffs can disrupt supply chains and influence industrial demand, investors are weighing their exposure carefully. Market participants watching price movements in metals should consider whether further corrections are on the cards or if support levels hold firm.

Elsewhere, the confirmation that Shiba Inu holders have offloaded 61.5 billion tokens is a telling sign of sentiment among those involved. When such moves happen en masse, it often hints at shifting confidence or reallocation of capital into other assets. Those tracking price action in digital assets must decide whether this activity represents noise or a more pronounced shift in positioning.

What happens next depends on technical levels, upcoming economic data, and any fresh catalysts in global markets.

Federal Reserve Bank of Chicago President Austan Goolsbee discussed the impact of government policies on prices during a TV interview. He stated that any price increases resulting from such policies must be factored in by the Fed.

Goolsbee referenced concerns from auto parts suppliers regarding tariffs and indicated that the Fed requires more clarity before contemplating rate cuts. He added that the administration’s policy framework is yet to be finalised, prompting the Fed to maintain a cautious approach.

Austan’s remarks highlight the uncertainty that comes with policy-driven cost pressures. If tariffs or other trade measures lead to higher prices for materials, those increases do not simply disappear—they are absorbed at some stage within the supply chain. When companies face higher costs, they either take lower margins or pass those expenses on. If the latter happens, it adds to inflation, and that is what the Fed is watching closely.

Rather than commit to any changes too early, policymakers prefer to wait until they have a clearer view. If inflation metrics show that price rises from these policies persist, interest rates are likely to stay elevated for longer than some may expect. The administration’s stance on trade and industry support is still shifting, and until that settles, the Fed sees little reason to make adjustments prematurely.

Meanwhile, Federal Reserve Governor Christopher Waller provided his own assessment. Speaking separately, Christopher suggested that before considering rate cuts, he would need to see multiple months of strong data showing inflation trending towards the Fed’s target. One or two reports moving in the right direction are not enough. The preference, as he put it, is for confirmation rather than assumption.

This aligns with previous messaging from policymakers. While markets may anticipate looser financial conditions sooner rather than later, officials continue to push back. Waiting allows them to be certain they are not acting too quickly. If inflation slows consistently, only then would they have the confidence to move. Until that happens, decisions will be cautious.

Wage growth, in particular, is a key area of concern. If wages continue rising faster than productivity, businesses could lift prices further, reinforcing inflation pressures. Signs of cooling in the labour market would offer reassurance, but the Fed does not rely on forecasts alone—it relies on realised data.

One risk in delaying too long is that rates could remain high even if inflation is already contained. But from the Fed’s perspective, the costs of cutting too soon, only to reverse course later, are far greater than the risks of holding steady for longer.

Swati Dhingra, an external member of the Bank of England’s Monetary Policy Committee, stated that the current level of monetary policy restrictiveness is already high. She noted a decrease in medium-term inflation pressures while acknowledging rising food prices without a corresponding increase in import costs.

Dhingra commented on the weak consumption levels in the UK, particularly when compared to Europe. She indicated that consumer spending is not driving growth in the UK, contrasting it with trends in the US and Eurozone.

The current GBP/USD trading rate is 1.2620, reflecting a slight decrease of 0.03%. The Bank of England’s adjustments to monetary policy are aimed at maintaining a 2% inflation rate, impacting interest rates and consequently the value of the Pound Sterling.

Swati’s remarks point towards monetary policy already being tight enough to dampen inflationary risks. This suggests we may not see rate hikes anytime soon, and if anything, markets should be prepared for a shift in sentiment towards easing. The fact that medium-term inflation pressures are falling supports this idea. However, rising food prices complicate the picture. Normally, higher food costs would indicate broader inflationary pressures, but the absence of a corresponding rise in import prices suggests this is not due to external cost pressures. This could mean domestic factors, such as supply chain disruptions or agricultural shifts, are behind this volatility.

Her comparison of the UK’s consumer spending to that of the Eurozone and the US is particularly telling. Weak consumption signals that demand within the economy is softer than policymakers might like. If people and businesses are spending less, it becomes harder for growth to gain momentum. In contrast, stronger demand in the US and Eurozone highlights a divergence in economic strength. For traders, this differentiation matters, as it influences expectations around future interest rate movements. If the UK continues to underperform in consumption, speculation around rate cuts will gain traction.

With the GBP/USD rate resting at 1.2620, edging down slightly, it reflects a delicate balance between economic expectations and monetary policy reactions. The Bank of England’s intent to manage inflation at 2% keeps interest rate decisions firmly in focus. Any shift in market perceptions around future rates will move this exchange rate, especially as traders react to central bank rhetoric and data trends.

For those looking at derivatives, this environment requires careful positioning. A delayed recovery in consumer spending could keep the Pound under pressure, while any surprise inflation readings or policy shifts could create sudden volatility. Market participants must weigh all these factors together rather than focusing on any singular element.

The European Union plans to increase defence spending in response to cuts under Trump. Macron mentioned that Trump’s tariffs could obstruct the EU’s efforts to boost defence budgets and stressed the importance of avoiding a trade war.

These remarks were made during a television interview after Macron’s meeting with Trump. The situation continues to develop, and further information will be provided soon.

Macron’s comments highlight clear concerns about how new tariffs from the United States might make it harder for European countries to direct more resources to their militaries. With defence expenditures already under pressure, any disruptions to trade could make balancing budgets even more difficult. If European governments must divert funds to offset economic losses from tariffs, plans to strengthen military capabilities could face delays or reductions.

This presents a near-term challenge. In the coming weeks, it will be important to assess whether policymakers in Brussels propose adjustments to existing strategies. A shift in trade terms may require reconsideration of planned allocations, particularly if expected revenues decline. If governments hesitate in their response, financial markets could begin to reflect those concerns.

We should also consider the broader environment. If a trade dispute escalates, it could lead to retaliatory measures, affecting industries beyond defence. That would complicate efforts to maintain stable growth while increasing military budgets. At the same time, uncertainty around future U.S. policies means that long-term planning becomes harder for European leaders. They must determine whether to proceed as planned or to develop alternatives that offer flexibility.

As these discussions unfold, monitoring any announcements from Brussels, Paris, and Berlin will be advisable. A coordinated response could influence expectations, while hesitation might have the opposite effect. If market participants sense disorder or division among European leaders, that could introduce added volatility.

Beyond policy adjustments, monetary authorities may weigh in if trade measures disrupt economic projections. The European Central Bank’s stance will need to be considered should financing conditions shift. Interest rate expectations and funding costs could be affected if new tariffs alter growth forecasts.

For now, Macron has laid out his concerns, and the response from other European leaders will provide further insight into the potential direction ahead. If discussions between Washington and Brussels continue without resolution, market sentiment could adjust accordingly. In the meantime, any changes to official defence spending commitments should be watched closely.