India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 9,341.17 Indian Rupees (INR) per gram, down compared with the INR 9,360.45 it cost on Wednesday.
The price for Gold decreased to INR 108,953.60 per tola from INR 109,178.40 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,341.17 |
| 10 Grams | 93,411.68 |
| Tola | 108,953.60 |
| Troy Ounce | 290,543.00 |
Daily Digest Market Movers: Gold struggles to build on Wednesday’s recovery amid reduced Fed rate cut bets
Minutes of the July 30-31 FOMC policy meeting released on Wednesday showed that almost all officials supported keeping rates unchanged, and a majority of participants judged the upside risk to inflation. Furthermore, policymakers noted rising threats to the economy that would warrant monitoring, though they largely agreed that their current stance was the appropriate way to go.
This comes amid signs of a gain of momentum in price pressures and continues to force investors to price out the possibility of a more aggressive policy easing by the Federal Reserve. This, in turn, assists the US Dollar to stand firm near its highest level in more than a week and fails to assist the non-yielding Gold to capitalize on the previous day's recovery from a three-week low.
Investors fretted about the central bank's independence after US President Trump demanded the resignation of Fed Governor Lisa Cook over unproven mortgage fraud allegations. Moreover, Trump has repeatedly attacked Fed Chair Jerome Powell for not cutting interest rates and even threatened to fire him. This caps the USD gains and acts as a tailwind for the precious metal.
Russian Foreign Minister Sergey Lavrov warned on Wednesday that attempting to resolve security issues relating to Ukraine without the participation of Moscow is a road to nowhere. Lavrov also accused European leaders of making clumsy attempts to change Trump's position on Ukraine. This keeps geopolitical risks in play and should contribute to limiting losses for the XAU/USD pair.
Traders now look forward to the release of flash PMIs for a fresh insight into the global economic health, which, in turn, will drive the broader risk sentiment and provide some impetus to the commodity. Apart from this, the US Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index might influence the USD and produce short-term opportunities around the commodity.
The focus, however, will remain glued to Fed Chair Jerome Powell's speech at the Jackson Hole Symposium. Investors will look for cues about the Fed's policy stance and rate-cut path, which will play a key role in determining the next leg of a directional move for the Greenback and the 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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