India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Monday, according to data compiled by FXStreet.
The price for Gold stood at 11,573.69 Indian Rupees (INR) per gram, up compared with the INR 11,463.25 it cost on Friday.
The price for Gold increased to INR 134,993.60 per tola from INR 133,705.10 per tola on friday.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 11,573.69 |
| 10 Grams | 115,739.70 |
| Tola | 134,993.60 |
| Troy Ounce | 359,992.90 |
Daily Digest Market Movers: Gold bulls retain control amid global flight to safety, Fed rate cut bets
The global risk sentiment took a turn for the worse on Friday after US President Donald Trump threatened an additional tariff of 100% on Chinese exports and announced new export controls on critical software effective November 1. In response, China accuses the US of double standards over the tariff threat and said that it could introduce its own unspecified countermeasures if the US president carries out his threat, adding that it was not afraid of a possible trade war.
Trump, however, softened his stance over the weekend and posted on Truth Social that the US does not wish to hurt China. Trump added further that China’s economy will be fine and that both countries wish to avoid economic pain. Nevertheless, the escalating rhetoric fuels uncertainty over a potential meeting between Trump and Chinese President Xi Jinping later this year, pushing the Gold price to a fresh all-time peak during the Asian session on Monday.
The US government shutdown is on track to extend into a third week as Congress remains deadlocked on a funding plan. Moreover, the Senate isn’t scheduled to hold any votes until Tuesday afternoon. Top House leaders signaled that there is virtually no appetite for their parties to cross the aisle and engage with the other side’s demands. Trump blamed Democrats for his decision to lay off thousands of federal employees, who began receiving notices on Friday.
Trump, while aboard Air Force One, warned that he may send long-range Tomahawk missiles that could be used by Ukraine if Russia doesn’t settle the war soon. Trump added that the missiles would act as a new step of aggression if introduced in the Russia-Ukraine war. Russia has cautioned against Ukraine being provided with Tomahawk missiles. This keeps geopolitical risks in play and turns out to be another factor driving flows towards the safe-haven precious metal.
According to the CME FedWatch tool, the possibility of a 25-basis-point interest rate cut by the Fed in October and December stands at around 96% and 87%, respectively. This, in turn, backs the case for a further appreciating move for the non-yielding yellow metal amid the lack of any US Dollar buying interest and relatively thin liquidity on the back of a bank holiday in the US.
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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