Most recent article: India Gold price Monday: Gold falls, 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 62,395 Indian Rupees (INR) per 10 grams, down INR 171 compared with the INR 62,566 it costed on Thursday.
As for futures contracts, Gold prices decreased to INR 62,611 per 10 gms from INR 62,768 per 10 gms.
Prices for Silver futures contracts decreased to INR 72,389 per kg from INR 72,430 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,570 |
| Mumbai | 64,380 |
| New Delhi | 64,455 |
| Chennai | 64,540 |
| Kolkata | 64,540 |
Global Market Movers: Comex Gold price extends the range play ahead of the US NFP report
- Geopolitical risks, along with China's economic woes, continue to weigh on investors' sentiment and offer some support to the safe-haven Comex Gold price on Friday.
- The benchmark 10-year US Treasury yield holds steady near 4.0% amid reduced bets for multiple rate cuts by the Federal Reserve and caps the XAU/USD.
- Traders trimmed expectations on the number of rate cuts by the Fed in 2024 to four from six on Wednesday following the release of the upbeat US macro data.
- The Automatic Data Processing (ADP) reported on Thursday that US private-sector employers added 164K jobs in December as against 115K expected.
- Adding to this, a report published by the US Department of Labor (DOL) showed that Weekly Jobless Claims fell more than expected, to 202K last week.
- The US Dollar bulls, meanwhile, seem reluctant to place aggressive bets and prefer to wait for the release of the closely-watched official US monthly jobs data.
- The popularly known Nonfarm Payrolls (NFP) report is expected to show that the economy added 170K new jobs in December vs 199K in the previous month.
- The unemployment rate is anticipated to edge higher to 3.8% from 3.7%, while Average Hourly Earnings growth is seen easing to 3.9% YoY rate from 4.0% in November.
- The crucial employment figures could guide the Fed's near-term policy outlook, which will influence the USD and provide a fresh impetus to the non-yielding metal.
(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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