Most recent article: India Gold price today: Gold falls, 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 61,828 Indian Rupees (INR) per 10 grams, up INR 392 compared with the INR 61,436 it cost on Friday.
As for futures contracts, Gold prices increased to INR 62,045 per 10 gms from INR 61,878 per 10 gms.
Prices for Silver futures contracts decreased to INR 71,540 per kg from INR 72,112 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 63,780 |
| Mumbai | 63,605 |
| New Delhi | 63,740 |
| Chennai | 63,775 |
| Kolkata | 63,845 |
Global Market Movers: Comex Gold price gains on subdued USD demand, geopolitical tensions
- Bets for a 25 basis points rate cut in May edged up to 40% and the odds for a move in June stood at about 70% early Monday.
- Expectations of a delayed Fed rate cut are boding well for the non-yielding Gold price on Comex, alongside renewed Middle East geopolitical tensions.
- Bets for 25 basis points (bps) rate cut in May edged up to 40% and the odds for a move in June stood at about 70% early Monday.
- On Friday, the US Producer Price Index (PPI) rose 0.3% MoM in January from a 0.1% decline in December. The PPI figure rose 0.9% in a year, above the market consensus.
- US Housing Starts fell -14.8% from 1.562M to 1.331M, while Building Permits dropped -1.5% from 1.8% in the previous reading.
- The Michigan Consumer Sentiment Index improved to 79.6 in February from January’s reading of 79.0, missing the market expectation.
- 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.
(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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