India Gold price today: Gold rallies, according to MCX data

Source Fxstreet
May 21, 2024 08:58

Gold prices rose in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).

Gold price stood at 73,853 Indian Rupees (INR) per 10 grams, up INR 692 compared with the INR 73,161 it cost on Monday.

As for futures contracts, Gold prices decreased to INR 73,968 per 10 gms from INR 74,367 per 10 gms.

Prices for Silver futures contracts decreased to INR 94,350 per kg from INR 95,267 per kg.

Major Indian city Gold Price
Ahmedabad 76,415
Mumbai 76,215
New Delhi 76,170
Chennai 76,420
Kolkata 76,370

 

Global Market Movers: Comex Gold price struggles to gain ground amid the USD recovery

  • Gold price on Comex reached a record high on Monday at $2,450, and silver prices moved toward 12-year highs. Gold has risen 18% this year, while silver has gained 35%. 
  • Fed Vice Chair Michael Barr said that the central bank “will need to allow our restrictive policy some further time to continue to do its work.” 
  • Fed policymaker Philip Jefferson, another permanent voting member of the Fed's rate-setting committee, said inflation was still easing, although nowhere near as quickly as he expected. 
  • Atlanta Fed President Raphael Bostic said that policy is restrictive and that it would take a while before the central bank gains confidence that inflation is headed to 2%. 
  • Investors see a 76% odd of rate cut from the Fed by 25 basis points (bps) in September and two cuts by the end of the year, according to the CME FedWatch Tool.  

(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.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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