Most recent article: India Gold price Friday: Gold falls, according to MCX data
Gold prices fell in India on Thursday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,181 Indian Rupees (INR) per 10 grams, down INR 43 compared with the INR 62,224 it costed on Wednesday.
As for futures contracts, Gold prices decreased to INR 62,223 per 10 gms from INR 62,585 per 10 gms.
Prices for Silver futures contracts decreased to INR 75,457 per kg from INR 74,927 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,340 |
| Mumbai | 64,145 |
| New Delhi | 64,280 |
| Chennai | 64,290 |
| Kolkata | 64,305 |
Daily Digest Market Movers: Comex Gold price remains confined in a familiar range ahead of US macro data
- Rising bets that the Federal Reserve will eventually pivot away from its hawkish stance early next year turn out to be a key factor acting as a tailwind for the Comex Gold price.
- Dovish Fed expectations drag the yield on the benchmark 10-year US government bond to its lowest level since July and keep the US Dollar bulls on the defensive.
- A slew of Fed officials recently tried to push back on the idea of rapid interest rate cuts next year, albeit did little to provide any meaningful impetus to the buck.
- The Conference Board's US Consumer Confidence Index jumped to a five-month high level of 110.7 in December from 101, rising the most since early 2021.
- US existing home sales unexpectedly rose by 0.8% in November, to a seasonally adjusted annual rate of 3.82 million units, snapping five straight months of decline.
- The overnight dramatic turnaround in the US equity markets is seen as another factor that benefits the safe-haven precious metal and remains supportive of the uptick.
- Traders now look forward to the final US GDP print, which is expected to show that the world's largest economy grew by a 5.2% annualized pace during the third quarter.
- Thursday's US economic docket also features the release of Weekly Initial Jobless Claims data and the Philly Fed Manufacturing Index later during the US session. The focus, meanwhile, remains on the Core PCE Price Index, due on Friday, which will influence the Fed's future rate decisions and infuse volatility in the markets.
(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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