Most recent article: India Gold price today: Gold recovers, according to MCX data
Gold prices fell in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 61,760 Indian Rupees (INR) per 10 grams, down INR 68 compared with the INR 61,828 it cost on Monday.
As for futures contracts, Gold prices increased to INR 62,071 per 10 gms from INR 62,004 per 10 gms.
Prices for Silver futures contracts decreased to INR 71,223 per kg from INR 71,306 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 63,920 |
| Mumbai | 63,770 |
| New Delhi | 63,875 |
| Chennai | 63,900 |
| Kolkata | 63,920 |
Global Market Movers: Comex Gold price regains upside traction, focus shifts to Fed Minutes
- Gold price on Comex is back in the bids near $2,020 after edging lower in Asian trading on Tuesday.
- The CME FedWatch Tool shows that markets price the first 25 basis points (bps) rate cut by the Fed in June.
- As of today, investors are pricing three Fed rate cuts this year, down from six expected at the beginning of January.
- The latest inflation reports from the US triggered a change of language from Fed officials, who struck a “cautious” tone. Atlanta Fed President Raphael Bostic suggested the Fed is in no rush to ease policy, saying the Fed could be patient.
- Regarding that, San Francisco Fed President Mary Daly stated, “We will need to resist the temptation to act quickly when patience is needed and be prepared to respond agilely as the economy evolves.”
- This week, the US economic schedule will feature the release of the latest Federal Reserve Open Market Committee (FOMC) Minutes alongside Fed officials' speeches beginning on Wednesday.
- Traders will get further cues from US S&P Global PMIs, Initial Jobless Claims data and the Chicago Fed National Activity Index, usually a prelude to the Institute for Supply Management (ISM) Manufacturing PMI.
(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.
(An automation tool was used in creating this post.)
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