Most recent article: India Gold price today: Gold rebounds, according to MCX data
Gold prices fell in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,045 Indian Rupees (INR) per 10 grams, down INR 223 compared with the INR 62,268 it cost on Tuesday.
As for futures contracts, Gold prices increased to INR 62,509 per 10 gms from INR 62,185 per 10 gms.
Prices for Silver futures contracts decreased to INR 75,440 per kg from INR 75,279 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,240 |
| Mumbai | 64,045 |
| New Delhi | 64,140 |
| Chennai | 64,210 |
| Kolkata | 64,195 |
Global Market Movers: Comex Gold price attempts a bounce, awaits US jobs data
- A combination of supporting factors aids the Comex Gold price to stage a modest comeback on Wednesday. The US Dollar lost its recovery momentum amid an improvement in risk sentiment.
- Moody’s Investors Service downgraded its outlook on China’s government credit ratings to negative from stable.
- China's Caixin Services PMI accelerated from 50.4 in October to 51.5 during the reported month, beating market expectations for a reading of 50.8, though it remains well below pre-COVID levels.
- Despite Federal Reserve Chair Jerome Powell's hawkish remarks on Friday, markets seem convinced that the US central bank is done raising rates and may start easing by the first half of the next year.
- The CME group's FedWatch Tool indicates a nearly 60% chance for an interest rate cut by the Fed in March 2024, which drags the US bond yields lower and acts as a headwind for the US Dollar.
- Furthermore, concerns about a darkening global economic outlook temper investors' appetite for riskier assets and drive some flows toward the perceived traditional safe-haven precious metal.
- Traders now look forward to the US ADP jobs data, which is expected to show that the American private sector added 130K jobs in November, up from 113K jobs addition seen in October.
- The main event risk this week, however, will remain the US monthly employment details, popularly known as the NFP report on Friday. The data will shed more light on the labor market conditions.
(An automation tool was used in creating this post.)
Gold FAQs
Why do people invest in Gold?
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Who buys the most Gold?
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
How is Gold correlated with other assets?
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
What does the price of Gold depend on?
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
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