Most recent article: India Gold price Tuesday: Gold rises, according to MCX data
Gold prices rose in India on Monday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,143 Indian Rupees (INR) per 10 grams, up INR 129 compared with the INR 62,014 it cost on Friday.
As for futures contracts, Gold prices decreased to INR 62,010 per 10 gms from INR 62,094 per 10 gms.
Prices for Silver futures contracts decreased to INR 71,638 per kg from INR 71,839 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,205 |
| Mumbai | 64,020 |
| New Delhi | 64,085 |
| Chennai | 64,280 |
| Kolkata | 64,260 |
Global Market Movers: Comex Gold price is weighed down by reduced bets for an early Fed rate cut
- Reduced bets for an early interest rate cut by the Federal Reserve, along with a generally positive risk tone, prompt fresh selling around the Comex Gold price on the first day of a new week.
- The better-than-expected US macro data released last week, along with the recent comments by Fed officials, force investors to further trim their bets for an early interest rate cut.
- The University of Michigan's preliminary survey showed that the US Consumer Sentiment Index rose from 69.7 in December to 78.8 this month, or the highest level since July 2021.
- According to CME Group's Fed Watch Tool, traders are now pricing in a less than 50% chance of a Fed rate cut move at the March policy meeting, down from over 70% last week.
- Chicago Fed President Austan Goolsbee said on Friday that the central bank needs more inflation data in hand before any decision could be made to cut interest rates.
- Separately, San Francisco Fed President Mary Daly said there is still a lot of work left to do on inflation and it is premature to think that rate cuts are around the corner.
- The US launched an attack on a Houthi anti-ship missile on Sunday, its seventh round of strikes since the Iran-backed rebel group began targeting merchant vessels in the Red Sea.
- There have been at least 140 attacks on US bases since October 17 and seven in the past week, including the heavy military strikes on Ain al-Assad base in Iraq, which injured US and Iraqi soldiers.
- Iran has vowed retaliation for a strike that killed five senior military officials in Damascus yesterday, an attack it blamed on Israel, which has neither confirmed nor denied involvement.
- Israeli forces and Hamas fighters clashed in several places on Sunday, while Israeli planes resumed heavy bombing on Khan Younis in the southern Gaza Strip.
- Israeli Prime Minister Benjamin Netanyahu appeared to rule out the two-state solution to the conflict and said that Israel must retain security control over all the territory west of Jordan.
- The People's Bank of China (PBoC) decided earlier this Monday to leave the one-year and five-year Loan Prime Rate (LPR) unchanged at 3.45% and 4.20%, respectively.
(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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