India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 9,527.26 Indian Rupees (INR) per gram, up compared with the INR 9,501.11 it cost on Wednesday.
The price for Gold increased to INR 111,124.10 per tola from INR 110,819.00 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,527.26 |
| 10 Grams | 95,272.56 |
| Tola | 111,124.10 |
| Troy Ounce | 296,330.60 |
Daily Digest Market Movers: Gold price is backed by reviving safe-haven demand amid tariff jitters
US President Donald Trump on Wednesday signed an executive order imposing an additional 25% tariff on Indian imports as "punishment" for buying oil from Russia, taking the total tariffs to 50%. Furthermore, reports suggest that Trump could impose an extra 15% tariff on all Japanese imports.
Moreover, Trump had announced earlier this week that US tariffs on semiconductor and pharmaceutical imports would be unveiled within the next week or so. This revives concerns about the potential economic fallout from a global trade war and boosts the safe-haven Gold price on Thursday.
Traders have been pricing in the possibility of more interest rate cuts than previously expected by the Federal Reserve this year. The bets were lifted by the weaker-than-expected US Nonfarm Payrolls report released last Friday and Tuesday's disappointing US ISM Services PMI print.
According to the CME Group's FedWatch Tool, market participants see over a 90% chance that the US central bank will lower borrowing costs at the next monetary policy meeting in September. Moreover, the Fed is expected to deliver at least two 25-basis-point rate cuts by the end of this year.
Dovish Fed expectations fail to assist the US Dollar in registering any meaningful recovery from a one-week low touched on Wednesday and further benefit the non-yielding yellow metal. However, a positive risk tone, tracking overnight gains on Wall Street, caps gains for the precious metal.
Traders now look forward to the US Weekly Initial Jobless Claims, due for release later during the North American session. This, along with speeches from influential FOMC members, would drive the USD demand and produce short-term trading opportunities around the XAU/USD pair.
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
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.
(An automation tool was used in creating this post.)
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