Most recent article: India Gold price today: Gold rises, 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 61,436 Indian Rupees (INR) per 10 grams, up INR 208 compared with the INR 61,228 it cost on Thursday.
As for futures contracts, Gold prices increased to INR 61,650 per 10 gms from INR 61,622 per 10 gms.
Prices for Silver futures contracts increased to INR 71,250 per kg from INR 71,121 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 63,465 |
| Mumbai | 63,285 |
| New Delhi | 63,395 |
| Chennai | 63,440 |
| Kolkata | 63,465 |
Global Market Movers: Comex Gold price ranges, looks to US macro data for fresh impetus
- A combination of diverging forces fails to assist the Comex Gold price to capitalize on this week's modest recovery from its lowest level since November 13.
- The yield on the benchmark 10-year US government bond holds above 4.0% and helps revive the USD demand, capping the upside for the XAU/USD.
- Thursday's dismal US data lifts hopes for an early rate cut by the Federal Reserve and boosts investors' confidence, further undermining the safe-haven metal.
- Bets for 25 basis points rate cut in May edged up to 40% and the odds for a move in June stood at 80% following the release of weaker US Retail Sales.
- The Commerce Department reported that Retail Sales declined sharply by 0.8% in January and sales excluding auto contracted by 0.6% last month.
- A separate report showed that import prices posted their biggest gain in nearly two years and jumped by 0.8% in January, the yearly rate fell 1.3%.
- Meanwhile, Jobless Claims declined by 8K from 220K in the previous week, to a one-month low level of 212K during the week ended February 10.
- Atlanta Fed President Bostic said on Thursday that the US central bank has made solid progress in lowering inflation and will soon contemplate cutting rates.
- Bostic added that a strong economy argues for patience in adjusting monetary policy and that the Fed does not face urgency to cut interest rates.
- The Israeli military said on Wednesday that its fighter jets began a series of strikes in Lebanon, raising the risk of a wider conflict in the Middle East.
- Traders now look to the US Producer Price Index for cues about the Fed's future policy decision and rate-cut path, which might provide a fresh impetus.
- Friday's US economic docket also features the release of Housing Starts and the Preliminary Michigan Consumer Sentiment Index for February.
- This, along with speeches by influential FOMC members, will drive the USD demand and produce short-term opportunities around the XAU/USD.
(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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