Most recent article: India Gold price Wednesday: Gold tumbles, according to MCX data
Gold prices rose in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,433 Indian Rupees (INR) per 10 grams, up INR 255 compared with the INR 62,178 it cost on Monday.
As for futures contracts, Gold prices decreased to INR 62,321 per 10 gms from INR 62,559 per 10 gms.
Prices for Silver futures contracts decreased to INR 72,342 per kg from INR 72,627 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,605 |
| Mumbai | 64,425 |
| New Delhi | 64,525 |
| Chennai | 64,600 |
| Kolkata | 64,580 |
Global Market Movers: Comex Gold price falls sharply as US Dollar, yields recover
- Comex Gold price corrects to near the crucial support of $2,040 as the US Dollar Index (DXY) has recovered sharply ahead of crucial United States economic data for December.
- A strong run-up in the precious metal that was propelled by firm bets in favour of early rate cuts by the Federal Reserve and deepening Middle East tensions, has stalled for now.
- As per the CME Fedwatch tool, chances in favour of an interest rate cut in March have eased nominally to 66% against 70% recorded earlier.
- A gradual decline has come as investors are reconsidering strong optimism for Fed starting the rate-cut cycle from March after getting mixed cues from stubbornly higher headline consumer price inflation and softer factory gate price data.
- Investors would get more cues about when the Fed could plan rate cuts after the release of the monthly US Retail Sales and Industrial Producer data, which are due to be released on Wednesday.
- Upbeat economic data would comfort Fed policymakers for maintaining a restrictive monetary policy stance while a soft report will firm the case of rate cuts in March.
- Before that, commentary from Fed Governor Christopher Waller will be keenly watched by market participants. Investors are eager to know how the Fed is considering the timeframe for the rate-cut cycle after the release of sticky consumer price inflation data.
- The appeal for the Comex Gold price has not been impacted on a broader basis as crises in the Middle East region have deepened after the airstrikes from the US and the United Kingdom.
- Iran-backed Houthi rebels have threatened to retaliate for attacking groups in Yemen, which will keep risk sentiment on its toes.
- The US Dollar Index has broken to a new high slightly above 103.00 as investors hope that other central banks will also start reducing interest rates earlier than previously projected. Meanwhile, the 10-year US Treasury yield has rebounded swiftly above 4.0%.
(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 tuns south toward 1.0800 as US Dollar recovers
EUR/USD stays under modest bearish pressure on Monday and declines toward 1.0800. The US Dollar stages a decent comeback as risk sentiment sours amid Middle East tensions and the markets' nervousness ahead of a critical central bank meetings and data releases.
GBP/USD stays below 1.2850 in cautious start to week
GBP/USD struggles to gain traction and trades in the red below 1.2850. Investors adopt a cautious stance ahead of the Federal Reserve's and the Bank of England's policy meeting this week, making it difficult for the pair to reverse its direction.
Gold struggles to hold above $2,400
Gold started the week on a bullish note as markets reacted to escalating tensions in the Middle East. After rising above $2,400, however, XAU/USD retreated below this level, pressured by the renewed US Dollar strength ahead of this week's critical events.
Ripple update: What to expect from XRP and Ripple lawsuit this week
Ripple (XRP) extended gains by nearly 2% early on Sunday. XRP sustained above the psychological price level of $0.60 amidst the optimism of Donald Trump’s speech at the Bitcoin conference, and BTC’s recent gains.
Seven fundamentals for the week: Fed, NFP, geopolitics and lots of data promise an explosive week Premium
Time for a summer holiday? Not yet, as this week promises to be super hot in financial markets. Three central bank decisions and US jobs data – which is growing in importance as inflation fades – provide a jam-packed schedule.