Most recent article: India Gold price today: Gold rises, according to MCX data
Gold prices rose in India on Monday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 63,215 Indian Rupees (INR) per 10 grams, up INR 882 compared with the INR 62,333 it cost on Friday.
As for futures contracts, Gold prices increased to INR 63,647 per 10 gms from INR 63,563 per 10 gms.
Prices for Silver futures contracts increased to INR 72,301 per kg from INR 72,278 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 65,430 |
| Mumbai | 65,225 |
| New Delhi | 65,400 |
| Chennai | 65,510 |
| Kolkata | 65,470 |
Global Market Movers: Comex Gold price is underpinned by a combination of supporting factors
- The US Dollar remains on the defensive in the wake of Friday's disappointing US macro data and less-hawkish remarks by Federal Reserve officials, which is seen acting as a tailwind for the Gold price.
- The ISM survey showed that business activity in the US manufacturing sector contracted more quickly than anticipated in February, with a measure of employment dropping to a seven-month low.
- The US ISM Manufacturing Index fell to 47.8 from 49.1 in January amid a decline in the New Orders Index to 49.2, while the Prices Paid Index edged lower to 52.5 from 52.9 in the previous month.
- Adding to this, the University of Michigan’s Consumer Sentiment Index also missed estimates and dropped to 76.9 in February, though inflation expectations were in line with the expectations.
- Chicago Federal Reserve President Austan Goolsbee noted that the policy rate is quite restrictive, and Dallas Fed President Lorie Logan said that it would be appropriate to slow the pace of the balance sheet shrinking.
- Fed Governor Adriana Kugler noted that progress on disinflation will continue, and Richmond Fed President Thomas Barkin said that overall inflation is likely to come down over the next few months.
- Furthermore, Fed Governor Christopher Waller said that he would like the central bank to boost its share of short-term Treasuries, exerting some downward pressure on the US Treasury bond yields.
- A softer risk tone also lends support to the safe-haven XAU/USD amid subdued US Dollar demand, though the upside seems limited ahead of the key US data and Fed Chair Jerome Powel's testimony.
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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