India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 9,388.78 Indian Rupees (INR) per gram, broadly stable compared with the INR 9,396.91 it cost on Wednesday.
The price for Gold was broadly steady at INR 109,507.50 per tola from INR 109,603.80 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,388.78 |
| 10 Grams | 93,886.73 |
| Tola | 109,507.50 |
| Troy Ounce | 292,024.10 |
Daily Digest Market Movers: Gold price is pressured by receding safe-haven demand on trade optimism
US President Donald Trump announced late Tuesday that his administration had reached a trade deal with Japan. Furthermore, reports that the US and the European Union are heading towards a 15% trade deal boost investors' confidence and weigh on the safe-haven Gold price for the second straight day on Thursday.
The markets do not expect an interest rate cut from the US Federal Reserve in July despite Trump's continuous push for lower borrowing costs. In fact, Trump has been attacking Fed Chair Jerome Powell personally over his stance on holding rates and repeatedly calling for the central bank chief's resignation.
Moreover, Fed Governor Chris Waller and Trump appointee Vice Chair for Supervision Michelle Bowman have advocated a rate reduction as soon as the next policy meeting on July 30. This keeps the US Dollar depressed near a two-and-a-half-week low and could offer some support to the non-yielding yellow metal.
Traders now look forward to the release of flash PMIs, which would provide a fresh insight into the global economic health and influence the safe-haven commodity. Apart from this, the crucial European Central Bank policy decision might infuse some volatility in the markets and drive the XAU/USD pair.
Meanwhile, the US economic docket features Weekly Initial Jobless Claims and New Home Sales data, which, in turn, would drive the USD and contribute to producing short-term trading opportunities around the commodity. Nevertheless, the fundamental backdrop warrants caution for aggressive traders.
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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