Most recent article: India Gold price today: Gold falls further, 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 65,420 Indian Rupees (INR) per 10 grams, down INR 97 compared with the INR 65,517 it cost on Monday.
As for futures contracts, Gold prices decreased to INR 65,945 per 10 gms from INR 66,035 per 10 gms.
Prices for Silver futures contracts decreased to INR 74,508 per kg from INR 74,514 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 67,765 |
| Mumbai | 67,440 |
| New Delhi | 67,505 |
| Chennai | 67,780 |
| Kolkata | 67,580 |
Global Market Movers: Comex Gold price turns cautious, awaits US CPI for a fresh directional impetus
- Some repositioning trade ahead of the crucial US consumer inflation figures exerts some pressure on the Gold price during the Asian session, though any meaningful corrective slide still seems elusive.
- The crucial US CPI report will play a key role in influencing expectations about the timing and the pace of rate cuts by the Federal Reserve, which should provide a fresh impetus to the XAU/USD.
- The headline CPI is anticipated to edge higher to 0.4% in February and the yearly rate is expected to hold steady at 3.1%, while the Core CPI is seen easing to the 3.7% YoY rate from 3.9% previous.
- The mixed US monthly jobs report released on Friday boosted rate-cut bets and dragged the yield on the benchmark 10-year US government bond to a five-week low, closer to the 4.0% mark.
- According to the CME group's FedWatch tool, traders are currently pricing in an around 70% chance of a rate cut by June, which keeps the USD bulls on the defensive and lends support to the metal.
- A sticky inflation print, however, is going to be a little troublesome to the commodity, while a cooler CPI reading will boost bets for an early rate cut and trigger a fresh leg up for the Gold price.
(An automation tool was used in creating this post.)
Gold FAQs
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.
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.
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.
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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