Most recent article: India Gold price today: Gold extends rally, 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 71,742 Indian Rupees (INR) per 10 grams, up INR 540 compared with the INR 71,202 it cost on Tuesday.
As for futures contracts, Gold prices increased to INR 71,508 per 10 gms from INR 71,340 per 10 gms.
Prices for Silver futures contracts increased to INR 82,723 per kg from INR 82,450 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 74,270 |
| Mumbai | 74,065 |
| New Delhi | 74,190 |
| Chennai | 74,270 |
| Kolkata | 74,255 |
Global Market Movers: Comex Gold price holds below record highs ahead of US CPI data
- Gold Price trades in positive territory around $2,355 in Wednesday’s early European session.
- The expectation of rate cuts from Fed, rising Middle East tensions and central bank purchases might lift the gold price.
- On Wednesday, Israeli foreign minister Israel Kat warned that Israel will retaliate if Iran attacks from its territory.
- Earlier, Iran's supreme leader said Israel "must be punished" for an apparent attack on an Iranian consulate building in Syria last week, which killed two of its senior military commanders, per Sky News.
- Gold purchases from major central banks, including China, helped the yellow metal stay afloat near the all-time high.
- Gold traders await the US CPI inflation data for March and the FOMC Minutes on Wednesday.
(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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