Most recent article: India Gold price today: Gold rises, according to MCX data
Gold prices fell in India on Friday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,161 Indian Rupees (INR) per 10 grams, down INR 132 compared with the INR 62,293 it cost on Thursday.
As for futures contracts, Gold prices increased to INR 62,571 per 10 gms from INR 62,454 per 10 gms.
Prices for Silver futures contracts decreased to INR 75,146 per kg from INR 75,076 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,325 |
| Mumbai | 64,125 |
| New Delhi | 64,235 |
| Chennai | 64,290 |
| Kolkata | 64,270 |
Global Market Movers: Comex Gold price seems poised to appreciate further
- Thursday's upbeat US macro data cast doubts over an early rate cut by the Federal Reserve, which provides some respite to the US Treasury bond yields and acts as a headwind for the Comex Gold price amid the risk-on mood.
- The US Commerce Department reported that Retail Sales rose by 0.3% in November as compared to the 0.2% fall (revised down from -0.1%) recorded in the previous month and the 0.1% decline anticipated.
- Moreover, core Retail Sales, which excludes automobiles, surpassed consensus estimates pointing to a 0.1% contraction and climbed 0.2% last month, while Retail Sales Control Group increased 0.4%.
- The US Labor Department, meanwhile, reported that the number of Americans filing for unemployment insurance for the first time fell to 202K last week, registering the lowest level since mid-October.
- Data released from China on Friday showed Retail Sales jumped 10.1% YoY in November vs. the 7.6% previous and Industrial Production increased 6.6% YoY as against a 4.6% rise in the prior month.
- Following the high-impact data, the National Bureau of Statistics (NBS) said that persistently recovery in demand is helpful for the improvement in consumer prices and that China will not see deflation.
- Reuters, citing three sources with knowledge of the matter, reported that Chinese leaders agreed at an annual meeting on the economy this week to set the 2024 economic growth target at around 5.0%.
- The markets, meanwhile, are still pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting and the odds of a May rate cut currently stand at 90%.
- This, along with the prevalent selling bias surrounding the US Dollar, which extends its decline for the fourth straight day and drops to over a four-month low, is seen lending support to the commodity.
- Moving ahead, Friday's release of flash global PMI prints could provide some impetus to the precious metal and allow traders to grab short-term opportunities on the last day of the week.
(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.
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