Most recent article: India Gold price today: Gold rebounds, 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 61,228 Indian Rupees (INR) per 10 grams, down INR 43 compared with the INR 61,271 it cost on Wednesday.
As for futures contracts, Gold prices decreased to INR 61,393 per 10 gms from INR 61,443 per 10 gms.
Prices for Silver futures contracts increased to INR 70,360 per kg from INR 70,152 per kg.
| Major Indian city | Gold Price in INR |
|---|---|
| Ahmedabad | 63,425 |
| Mumbai | 63,200 |
| New Delhi | 63,365 |
| Chennai | 63,370 |
| Kolkata | 63,395 |
Global Market Movers: Comex Gold price remains confined in a narrow range amid mixed fundamental cues
- The stronger US consumer inflation figures prompted investors to lower bets for early rate cuts by the Federal Reserve and underpin the US Dollar, capping the upside for the non-yielding Gold price on Comex.
- Fed funds futures have priced out a rate cut in March and see a nearly 80% chance of easing at the June meeting, and about three 25 basis points rate cuts by the end of this year as against five two weeks ago.
- The US Treasury bond yields retreat further on the back of overnight comments by Chicago Fed President Austan Goolsbee, saying that the central bank should be wary of waiting too long before it cuts rates.
- Goolsbee indicated that the Fed's trajectory back towards achieving its 2% inflation target would still be on track even if price increases in the US run a bit hotter than expected over the next few months.
- This keeps a lid on the Greenback, which, along with the risk of a further escalation of geopolitical tensions in the Middle East, lends some support to the safe-haven XAU/USD and helps limit the downside.
- The Israeli military said on Wednesday its fighter jets began a series of strikes in Lebanon in retaliation to a rocket fired into Northern Israel, raising the risk of a war between the two countries.
- Meanwhile, negotiations for a ceasefire between Israel and Hamas in Gaza have resumed as the former faces international pressure to stop its bombardment of the southern Gaza city of Rafah.
- The US Retail Sales figures for January are due for release later during the North American session, with consensus estimates pointing to a 0.1% fall as compared to a flat reading last month.
- Thursday's US economic docket also features the Empire State Manufacturing Index, the Philly Fed Manufacturing Index, the usual Weekly Initial Jobless Claims and Industrial Production data.
(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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