Most recent article: India Gold price today: Gold rises, according to MCX data
Gold prices rose in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 66,171 Indian Rupees (INR) per 10 grams, up INR 209 compared with the INR 65,962 it cost on Tuesday.
As for futures contracts, Gold prices decreased to INR 66,640 per 10 gms from INR 66,686 per 10 gms.
Prices for Silver futures contracts decreased to INR 74,424 per kg from INR 74,518 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 68,565 |
| Mumbai | 68,265 |
| New Delhi | 68,205 |
| Chennai | 68,510 |
| Kolkata | 68,365 |
Global Market Movers: Comex Gold price trades flat amid mixed fundamental cues
- The Federal Reserve last week projected a less restrictive monetary policy going forward and signaled three rate cuts by year-end, which act as a tailwind for the non-yielding Comex Gold price.
- Russia ramped up its attacks on Ukrainian energy infrastructure in response to a spate of recent drone strikes on its oil refineries by the latter, raising the risk of a further escalation of tensions.
- Iran-backed Houthi militants on Tuesday said they had mounted six attacks on ships in the Gulf of Aden and the Red Sea over the past 72 hours, tempering investors' appetite for riskier assets.
- The US Dollar adds to the previous day's modest gains that followed data showing that US Durable Goods Orders data rose by 1.4% in February as compared to the 6.2% slump in the previous month.
- Separately, the Conference Board reported that the US Consumer Confidence Index dipped to 104.7 in March, little changed from the previous month's reading of 104.8 amid fading fears of a recession.
- Furthermore, consumers' inflation expectations ticked up to 5.3% during the reported month from 5.2% in February, which might force the Federal Reserve to keep interest rates higher for longer.
- The outlook keeps the yield on the benchmark 10-year US government bond afloat above the 4.0% threshold and continues to underpin the Greenback, warranting caution for the XAU/USD bulls.
- Traders might also prefer to wait for the release of the US Personal Consumption and Expenditure (PCE) Price Index for more cues about the Fed's policy path and before placing fresh directional bets.
(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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