Most recent article: India Gold price Thursday: Gold rises, 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 61,967 Indian Rupees (INR) per 10 grams, down INR 158 compared with the INR 62,125 it cost on Tuesday.
As for futures contracts, Gold prices increased to INR 62,265 per 10 gms from INR 62,179 per 10 gms.
Prices for Silver futures contracts decreased to INR 72,240 per kg from INR 72,047 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,170 |
| Mumbai | 64,015 |
| New Delhi | 64,070 |
| Chennai | 64,160 |
| Kolkata | 64,205 |
Global Market Movers: Comex Gold price lures buyers amid a softer risk tone
- The uncertainty over the timing of when the Federal Reserve will start cutting interest rates holds back traders from placing fresh directional bets around the Comex Gold price.
- The New York Fed reported on Monday that US consumers' projection of inflation fell to the lowest level in nearly three years in December, lifting bets for an imminent shift in the Fed's policy stance
- Meanwhile, the resilient US economy, which is experiencing above-target inflation, gives the US central bank more headroom to keep interest rates higher for longer.
- This allows the yield in the benchmark 10-year US government bond to hold above the 4.0% threshold, which lends support to the US Dollar and caps the yellow metal.
- Bearish traders, however, seem reluctant and prefer to wait on the sidelines ahead of the latest US consumer inflation figures, due for release on Thursday.
- Citing a senior US Defense Department official, CNBC reported late Tuesday that Iran-backed Houthi militants launched the largest attack to date on commercial merchant vessels.
- A senior People’s Bank of China official said this Wednesday that the central bank may use monetary policy tools to provide strong support for reasonable credit growth.
- The official added that the PBoC will strengthen its counter-cyclical and cross-cycle policy adjustments to create favorable conditions for the country’s economic growth.
- There isn't any relevant market-moving macro data scheduled for release from the US on Wednesday, leaving the Comex Gold price at the mercy of the USD price dynamics.
(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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