Most recent article: India Gold price today: Gold extends correction, according to MCX data
Gold prices rose in India on Friday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,196 Indian Rupees (INR) per 10 grams, up INR 69 compared with the INR 62,127 it cost on Thursday.
As for futures contracts, Gold prices increased to INR 62,500 per 10 gms from INR 62,466 per 10 gms.
Prices for Silver futures contracts decreased to INR 74,465 per kg from INR 74,313 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,355 |
| Mumbai | 64,145 |
| New Delhi | 64,230 |
| Chennai | 64,330 |
| Kolkata | 64,305 |
Global Market Movers: Comex Gold price lacks clear direction amid mixed cues ahead of US NFP
- The market conviction that the Federal Reserve is done with its policy-tightening campaign and may start cutting rates in 2024 continues to act as a tailwind for the Comex Gold price.
- The US JOLTS Job Openings data and the ADP report released earlier this week pointed to a cooling in the US labor market and reaffirmed dovish Fed expectations.
- According to the CME group's FedWatch Tool, traders are currently pricing in over a 60% chance of a 25 bps Fed rate cut move as early as the March 2024 policy meeting.
- The yield on the benchmark 10-year US government bond moves away from a three-month low and lends some support to the US Dollar, capping gains for the non-yielding metal.
- The lack of any further escalation in the Middle East tensions and the overnight risk-on rally in the US equity markets also contributes to keeping a lid on the safe-haven XAU/USD.
- Traders now look to the closely-watched US monthly employment details for more cues about labor market conditions and the timing when the Fed could begin loosening policy.
- The headline NFP print is expected to show that the US economy added 180K jobs in November, up from 150K in the previous month, and the unemployment rate held steady at 3.9%.
- The focus will also be on Average Hourly Earnings data, which is expected to have risen by 0.3% during the reported month and by 4% over the past 12 months through November.
- Any negative surprise could force the Fed to soften its hawkish tone in the coming months and benefit the commodity amid worries about a global economic downturn and geopolitical tensions.
(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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