Most recent article: India Gold price Monday: Gold rises, according to MCX data
Gold prices rose in India on Friday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,066 Indian Rupees (INR) per 10 grams, up INR 16 compared with the INR 62,050 it cost on Thursday.
As for futures contracts, Gold prices increased to INR 62,210 per 10 gms from INR 61,788 per 10 gms.
Prices for Silver futures contracts decreased to INR 72,034 per kg from INR 71,354 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,250 |
| Mumbai | 64,065 |
| New Delhi | 64,270 |
| Chennai | 64,250 |
| Kolkata | 64,285 |
Global Market Movers: Comex Gold price cheers Middle East tensions, subdued USD demand
- The mixed US consumer inflation figures raised expectations that the Federal Reserve could delay a much-anticipated rate cut in March and dragged the Comex Gold price to a one-month low on Thursday.
- The headline US CPI accelerated from the 3.1% YoY rate to 3.4% in December, while the core gauge (excluding volatile food and energy prices) registered its smallest yearly gains since May 2021.
- Cleveland Fed President Loretta Mester commented on the latest CPI figures and said that it would likely be too soon for the US central bank to cut its interest rates at the March policy meeting.
- Adding to this, Richmond Fed chief Tom Barkin noted that the central bank needs to be convinced that inflation is headed to target and will be open to lowering rates once inflation is on track to 2%.
- Separately, Chicago Fed President Austan Goolsbee said that the central bank is still on a comfortable path forward on inflation and will have to evaluate policy restrictiveness as inflation continues to decline.
- According to the CME group's FedWatch Tool, the markets are still pricing in over a 65% probability of a rate cut in March, which is seen acting as a tailwind for the non-yielding yellow metal.
- The yield on the benchmark 10-year US government bond remains depressed below the 4.0% threshold, which keeps the US Dollar bulls on the defensive and benefits the non-yielding metal.
- The US and UK forces carried out attacks against multiple Houthi targets in reaction to drone and missile attacks on ships in the Red Sea, raising the risk of a further escalation of geopolitical tensions.
- The Chinese inflation figures released this Friday fuel deflationary risks, while a 0.3% fall in imports during 2023 pointed to sluggish domestic demand and added to worries about slow economic recovery.
- Comex Gold price remains on track to end in the red for the second successive week as traders now look to the US Producer Price Index and Minneapolis Fed President Neel Kashkari's speech for a fresh impetus.
(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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.