Most recent article: India Gold price today: Gold steadies, according to FXStreet data
Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 6,182.45 Indian Rupees (INR) per gram, down INR 22.48 compared with the INR 6,204.93 it cost on Monday.
The price for Gold decreased to INR 72,110.83 per tola from INR 72,372.97 per tola.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 6,182.45 |
| 10 Grams | 61,824.46 |
| Tola | 72,110.83 |
| Troy Ounce | 192,301.80 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Global Market Movers: Comex Gold price suffers from diminishing bets for a September Fed rate cut move
- The upbeat US Nonfarm Payrolls released on Friday fueled speculations that the Federal Reserve will keep rates higher for longer and turn out to be a key factor acting as a headwind for the non-yielding Comex Gold price.
- The chances of a rate cut in September fell to around 50% following the US jobs data and the markets are now pricing in just one cut of 25 basis points this year, either at the November or December policy meeting.
- The yield on the benchmark 10-year US government bond holds steady above 4.45%, while the yield on the rate-sensitive two-year US Treasury note remains close to 5.0%, which, in turn, is underpinning the US Dollar.
- The USD Index, which tracks the Greenback against a basket of currencies, stands tall near its highest level since May 14 set on Monday and contributes to capping the upside for the USD-denominated commodity.
- French President Emmanuel Macron's decision to call snap elections later this month increased political uncertainty in the Eurozone's second-biggest economy and could lend support to the XAU/USD.
- Traders also seem reluctant and keenly await this week's key US macro data – the latest consumer inflation figures – and the crucial FOMC decision on Wednesday before placing aggressive directional bets.
Gold FAQs
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.
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.
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.
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.
(An automation tool was used in creating this post.)
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