New Delhi [India], May 17 (ANI): The correction in gold will be short-term and prices could trade in the USD 3050/ounce (oz) to USD 3250/oz range in the second quarter of 2025, according to a report by ICICI Bank Global Markets.

After a sharp rise witnessed over January-April 2025 in which gold prices rallied by 25 per cent, a correction has set in over the last fortnight as prices have fallen by 4 per cent.

The report adds that the fall in prices reflects reduced anxiety about the trade war and subsequently reduced safe-haven appeal.

Data released from the World Gold Council (WGC), although it is lagged, also shows the main sources of demand for gold that has been in place in the first quarter of 2025.

In this regard, investment-related demand for gold that increased by 170 per cent YoY in Q1 2025 underpinned the rally in the period as investors turned to the yellow metal in the face of uncertainty about the Trump policy regime and, in particular, about the trade war. As the trade-war anxiety has eased post the 90-day truce between the US and China, the subsequent demand for gold has reduced, which has driven prices lower.

Pointing out the slow gold purchases by the central bank, the report said that the trend will be short-term. Elevated prices have also hit jewellery demand, which could continue going forward, the report added.

On the outlook of global gold prices, the report adds, '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.'

In Indian markets, as per the prices at MCX, the price of gold on Saturday stands at Rs 92,480 for 10 grams.

Gold prices dipped lower on Wednesday, following easing trade tensions between China and the United States, which led to a decline in safe-haven demand.

Gold prices in Indian markets have traded flat responding to weakness in global prices and a mild appreciation of the INR against the USD that has taken place over the period.

In volume terms, gold imports have fallen on a sequential basis as country imported USD 3.1 bn worth of gold in April, after importing USD 4.5 bn worth of gold in March reflecting an easing in jewellery demand that has taken place in response to elevated prices.

Going forward, the report added that local gold prices in India are expected to continue trading with an upside bias trading in the Rs 92,500 per ten grams to Rs 94,500 per ten grams range in Q22025 and moving to the Rs 96,000 per ten grams to the Rs 98,000 per tens grams range in the second half of 2025. (ANI)