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

    Source Fxstreet
    January 26, 2024 08:56

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

    Gold price stood at 62,151 Indian Rupees (INR) per 10 grams, up INR 99 compared with the INR 62,052 it cost on Thursday.

    As for futures contracts, Gold prices increased to INR 62,070 per 10 gms from INR 61,986 per 10 gms.

    Prices for Silver futures contracts increased to INR 71,875 per kg from INR 71,730 per kg.

    Major Indian city Gold Price
    Ahmedabad 64,340
    Mumbai 64,180
    New Delhi 64,160
    Chennai 64,290
    Kolkata 64,330

    Global Market Movers: Comex Gold price struggles to gain traction amid mixed fundamental cues

    • The benchmark 10-year US Treasury yield retreats further from over a one-month high touched last week and lends support to the Comex Gold price for the second straight day on Friday.
    • Data released on Thursday showed that the US economy expanded at an annual rate of 3.3% during the fourth quarter of 2023, beating consensus estimates for a reading of 2.0%.
    • Further details of the report indicated that the core PCE Price Index was unchanged during the September-December period, suggesting that inflation pressures are receding.
    • This validated the view that the world's largest economy is more likely to avoid a recession and overshadowed a rise in the US Weekly Initial Jobless Claims, to 214K last week.
    • Separately, the US Census Bureau reported that US Durable Goods Orders were flat in December, while new orders excluding transportation and defense increased 0.3%.
    • Investors remain worried that the Israeli-Hamas war could trigger a broader regional conflict as multiple nations and armed groups continue targeting each other’s territories.
    • Adding to this, economists expect the global economy to weaken in 2024, which, in turn, is seen as another factor acting as a tailwind for the safe-haven precious metal.
    • Market participants, meanwhile, remain uncertain over the timing of when the Federal Reserve will start lowering borrowing costs amid a still-resilient domestic economy.
    • Traders now look to the US Personal Consumption Expenditures Price Index for cues about the Fed's future policy decisions and determine the near-term trajectory for the XAU/USD.

    (An automation tool was used in creating this post.)

    Gold FAQs

    Why do people invest in Gold?

    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.

    Who buys the most Gold?

    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.

    How is Gold correlated with other assets?

    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.

    What does the price of Gold depend on?

    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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