India-Pakistan tensions escalate: India may challenge a proposed $1.3-billion International Monetary Fund (IMF) loan for Pakistan at the forthcoming board meeting of the global institution, according to three sources privy to the deliberations.
On May 9, the IMF board will evaluate a fresh $1.3-billion arrangement for Pakistan under its climate resilience loan programme. Additionally, it will assess the ongoing $7-billion bailout package, including the status of policy commitments.
“There is a view that support to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up,” a source informed ET.
Pakistan and the IMF reached an agreement in July 2024 for a $7-billion package under the extended fund facility. The programme necessitated Pakistan to implement effective policies and reforms to enhance macroeconomic stability, tackle fundamental structural issues, and establish conditions for robust, inclusive and sustainable growth.
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The IMF is releasing the $7 billion in installments, and the board’s approval is essential for the next $1 billion tranche to be released.
Previously, India had abstained from casting its vote on the bailout package extended to its neighbour to bolster its struggling economy. In this instance, India might cast a negative vote against IMF assistance to Pakistan, citing fund misappropriation and technical reasons, another source indicated.
Following the terrorist attack in Pahalgam, India has implemented various measures against Pakistan, including suspending the Indus Waters Treaty with the neighbouring nation.
S Jaishankar, the external affairs minister, held discussions on Tuesday with his counterparts from seven non-permanent UN Security Council member nations. He is believed to have informed them about the cross-border connections to the April 22 terrorist incident that resulted in 26 civilian casualties.

At a jewellery shop in Basavangudi, in Bengaluru, on Akshaya Tritiya day, on April 30, 2025. File
| Photo Credit: The Hindu

“India’s gold demand witnessed a 15% on-year decline to 118.1 tonnes in the January-March quarter of this year, even as value grew by 22% to ₹94,030 crore owing to surging prices,” the World Gold Council (WGC) said on Wednesday (April 29, 2025.)

According to the WGC forecast, India’s gold demand for 2025 is expected to be between 700-800 tonnes. Gold prices have risen 25% since the beginning of 2025, approaching the key psychological threshold of ₹1,00,000 per 10 gm, affecting consumer buying patterns.

“The elevated prices have impacted affordability. Yet, the enduring cultural significance of gold, especially ahead of Akshaya Tritiya and the upcoming wedding season, continues to support buying sentiment,” WGC India CEO Sachin Jain said in its quarterly report.

According to experts, the gold market is humming with excitement on the auspicious occasion of Akshaya Tritiya, which holds immense cultural significance in India, traditionally marking a surge in gold purchases.

Record prices have pushed consumers towards smaller, lightweight pieces, with some postponing purchases hoping for price dips. Despite this, wedding-related demand remained relatively stable given its essential nature.

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“Experts believe, while the current price levels might prompt some to exercise caution, the inherent cultural significance of gold during Akshaya Tritiya, coupled with its enduring status as a reliable asset, suggests continued positive momentum in buying,” they added.

Investment demand, however, remained resilient with a 7% rise to 46.7 tonnes, from 43.6 tonnes in the corresponding period. Moreover, amid financial market uncertainty, gold’s role as a safe asset has become more pronounced, and got reflected in a sharp uptick in demand for gold bars and coins.

However, jewellery demand declined by 25% to 71.4 tonnes during the first quarter of 2025 calendar year, from 95.5 tonnes in the year-ago period. This was the lowest volume since 2020, though value was 3% higher year-on-year, according to WGC.

Gold imports rose 8% to 167.4 tonnes in the January-March quarter, while recycling fell 32% to 26 tonnes, as consumers held onto their gold amid record prices. The average quarterly gold price in the first quarter of this year was ₹79,633.4 per ten gram, compared to ₹55,247.2 in Q1 2024.

Meanwhile, global gold demand has increased 1% to 1,206 tonnes in the January-March quarter of 2025 — the highest first-quarter level since 2019.

Gold rate today on Akshaya Tritiya 2025: Gold June futures at MCX saw profit-taking on Akshaya Tritiya, commencing at Rs 95,208/10 grams, showing a decline of 0.4% or Rs 384. Additionally, silver July futures began trading at Rs 97,292/kg, down by Rs 826 or 0.84%.
The initial four months of 2025 have demonstrated exceptional performance for gold investments, with prices increasing approximately 25% during this period.
Akshaya Tritiya attracts numerous investors to purchase gold, as it is regarded as a favourable day for acquiring precious metals as a representation of prosperity and financial stability. Investors who put their money in gold last Akshaya Tritiya have realised significant gains exceeding 31%, according to Deveya Gaglani, Senior Research Analyst- Commodities, Axis Securities quoted by ET.
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On Tuesday, precious metals showed varied results in domestic and international trading. Gold June futures finished at Rs 95,592 per 10 grams, declining by 0.45%, whilst silver July futures concluded at Rs 98,118 per kilogram, advancing by 0.42%.
Tuesday’s trading saw gold and silver moving within a range, concluding differently following reports of U.S. trade negotiations with various nations. U.S. stock markets showed slight improvements, whilst economic indicators presented mixed results.
“The U.S. consumer confidence fell amid inflation fears and higher U.S. trade tariffs and unable to support gold prices. Silver showed some bargain buying amid hopes of US-China trade negotiations,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Market participants are waiting for the U.S. GDP and corporate earnings numbers for more clarity on the economic activities. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the key U.S. economic data; gold prices could hold its support level of $3,200 per troy ounce and silver prices could also hold $31.40 per troy ounce levels on a weekly closing basis,” he added.
The US Dollar Index, DXY, currently trades near 99.30, showing an increase of 0.06 or 0.06%.
At MCX, Manoj Kumar Jain sees gold’s support levels at Rs 95,000-94,400 and resistance at Rs 96,040-96,650. For silver, he identifies support at Rs 97,400-96,650 and resistance at Rs 97,400-96,650.
For trading silver, Jain recommends purchasing during dips near Rs 97,400-97,000, setting a stop loss at Rs 96,350, targeting Rs 98,500-99,200.
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Deveya Gaglani advises staggered gold purchases during 5-10% price corrections, noting current elevated prices near overbought zones.
“Currently, the risk-reward ratio is unfavourable at these record levels. In a bullish scenario, if prices hold above Rs 100,000, they could reach Rs 110,000 by the next Akshaya Tritiya,” he said.
He anticipates price consolidation around Rs 87,000 on the downside.
(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)