India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 10,682.33 Indian Rupees (INR) per gram, broadly stable compared with the INR 10,692.75 it cost on Thursday.
The price for Gold was broadly steady at INR 124,596.70 per tola from INR 124,718.10 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 10,682.33 |
| 10 Grams | 106,823.40 |
| Tola | 124,596.70 |
| Troy Ounce | 332,254.60 |
Daily Digest Market Movers: Gold bulls seem reluctant amid mixed cues, ahead of critical US inflation data
The US Bureau of Economic Analysis' (BEA) final estimate published on Thursday showed that the economy expanded at an annualized pace of 3.8% in the second quarter, significantly higher than the previously estimated growth of 3.3%. Moreover, the revision highlights a strong rebound from a 0.5% contraction recorded in the first quarter.
Furthermore, the US Census Bureau reported that Durable Goods Orders rose by 2.9% month-over-month in August, reversing a revised 2.7% slump in July and better than market estimates of a 0.5% fall. Adding to this, US Initial Jobless Claims dropped to 218K for the week ending September 20 from the previous week’s 232K (revised from 231K).
The strong data pointed to economic resilience despite headwinds stemming from US President Donald Trump's trade tariffs. In fact, Trump on Thursday announced a 100% tariff on imports of branded or patented pharmaceutical products, 25% levies on imports of all heavy-duty trucks, and 50% tariffs on kitchen cabinets starting from October 1.
Federal Reserve Governor Stephen Miran told Fox Business on Thursday that there is no material evidence of tariff-driven inflation, but that seems to be holding up policymakers. The economy is more vulnerable to downside shocks because Fed policy is too tight and the policy is 200 basis points too restrictive, Miran added further.
Separately, Chicago Fed President Austan Goolsbee noted that the job market seems to be cooling, but inflation is going up, and counting on inflation being transitory makes him uneasy. Goolsbee added that rates can go down a fair bit more if inflation heads toward 2%, but was wary of frontloading rate cuts, and that we must get inflation to 2%.
Kansas City Fed President Jeffrey Schmid said that the decision to lower interest rates was appropriate as the recent data points to rising risks to the job market. Fed policy is slightly restrictive, which is the right place to be; inflation is still too high, and going forward, we will be data-dependent on monetary policy choices, Schmid noted further.
Furthermore, San Francisco President Mary C. Daly made additional comments, saying that the impact of tariffs on inflation hasn't been as large as forecast. We are in a tradeoff space and need to balance risks. A little more rate cutting will be needed over time, though the Fed still needs to watch both sides of its mandate, Daly stated further.
Nevertheless, the CME Group's FedWatch Tool indicated that traders are still pricing in an over 85% chance that the Fed will lower borrowing costs by 25 basis points in October, and odds for another rate cut in December stand at just over 60%. This keeps a lid on the recent US Dollar rally to a three-week high and could support the Gold price.
Traders now look forward to the release of the US Personal Consumption Expenditure (PCE) Price Index, due later during the North American session. The core PCE Price Index is considered the Fed's preferred inflation gauge and might influence expectations about the future rate-cut path, which, in turn, will drive the USD and the non-yielding yellow metal.
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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