Gold price in India: Rates on June 17

Most recent article: India Gold price today: Gold steadies, according to FXStreet data

Gold prices fell in India on Monday, according to data compiled by FXStreet.

The price for Gold stood at 6,228.65 Indian Rupees (INR) per gram, down compared with the INR 6,265.07 it cost on Friday.

The price for Gold decreased to INR 72,649.75 per tola from INR 73,074.51 per tola a day earlier.

Unit measure	Gold Price in INR
1 Gram	6,228.65
10 Grams	62,286.50
Tola	72,649.75
Troy Ounce	193,733.60

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 stays defensive amid Fed rate jitters

The Federal Reserve adopted a more hawkish stance at the end of the June policy meeting, which continues to act as a tailwind for the US Dollar and is seen undermining the non-yielding Comex Gold price.
That said, weaker US consumer and producer prices data released last week indicated that inflation is subsiding, which keeps hopes alive for two Fed rate cuts in 2024, in September and in December.
Adding to this, the Labor Department reported on Friday that US import prices unexpectedly declined for the first time in five months in May, providing another boost to the domestic inflation outlook.
Furthermore, the University of Michigan survey showed that consumer sentiment touched its lowest level in seven months in June and the index fell to 65.6 from 69.1 in May, missing consensus estimates.
Cleveland Federal President Loretta Mester said on Friday that we are starting to see inflation move down again after stalling and that it is important not to wait too long to start cutting interest rates.
Mester, in an interview with CNBC, added that she would like to see a longer run of good-looking inflation data and that the path towards the Fed's 2.0% inflation goal may take longer than expected.
Chicago Fed President Austan Goolsbee noted that he still wants to see further progress on inflation and that if inflation behaves as it did in the first quarter, we will have a hard time cutting rates.
Minneapolis Fed President Neel Kashkari said on Sunday that we need to see more evidence to convince inflation is heading to 2% and that the central bank will wait until December to cut rates.
This raises doubts about the Fed's rate-cut path, which might cap any meaningful appreciating move for the buck and lend some support to the XAU/USD amid geopolitical risks and political uncertainty.

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.

(An automation tool was used in creating this post.)

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