India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 11,295.04 Indian Rupees (INR) per gram, down compared with the INR 11,351.78 it cost on Thursday.
The price for Gold decreased to INR 131,743.10 per tola from INR 132,404.90 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 11,295.04 |
| 10 Grams | 112,950.10 |
| Tola | 131,743.10 |
| Troy Ounce | 351,315.20 |
Daily Digest Market Movers: Gold bulls remain on the sidelines despite a supportive fundamental backdrop
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The US Dollar rose to its highest level since early August on Thursday, prompting the XAU/USD bulls to take some profits off the table following the recent record-setting rally. Adding to this, a ceasefire deal between Israel and Hamas turned out to be another factor that contributed to the safe-haven Gold's overnight downfall.
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Federal Reserve Chair Jerome Powell offered no fresh policy signals, while Minutes from the September FOMC meeting released on Wednesday showed lingering inflation concerns. Traders, however, are still pricing in a greater chance that the US central bank will lower borrowing costs two more times by the end of this year.
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The government shutdown is now in its second week amid few signs of progress toward a deal to advance funding bills. The Senate rejected motions to advance competing bills for the seventh time on Thursday and will not hold any further votes until at least next week, when the upper chamber is expected to return on Tuesday.
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US President Donald Trump said Thursday that Washington and NATO allies were stepping up the pressure to end the war in Ukraine. Ukraine reported a large-scale Russian assault on Kyiv early Friday, involving ballistic missiles and drone strikes, which targeted critical infrastructure and caused widespread power outages.
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This keeps geopolitical risks in play and largely offsets the optimism led by the Israel-Hamas agreement on the first phase of the Gaza peace plan. Apart from this, a modest USD downtick supports the precious metal, which seems poised to register gains for the eighth consecutive week amid a supportive fundamental backdrop.
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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