India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 9,505.86 Indian Rupees (INR) per gram, down compared with the INR 9,528.17 it cost on Tuesday.
The price for Gold decreased to INR 110,877.20 per tola from INR 111,134.70 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,505.86 |
| 10 Grams | 95,060.84 |
| Tola | 110,877.20 |
| Troy Ounce | 295,670.30 |
Daily digest market movers: Gold price surges as EU-US trade talks seem to falter
US Treasury yields continued to drop as the 10-year Treasury note dives over five basis points (bps) to 4.332% at the time of writing. Consequently, US real yields, which are calculated by subtracting inflation expectations from the nominal interest rate, have also decreased by four and a half basis points to 1.932%.
The US Dollar Index (DXY), which tracks the buck’s performance against a basket of six currencies, is down 0.44% at 97.43.
Trade talks between the EU and the US appear to have stalled, following the White House's imposition of 30% tariffs on EU goods. Consequently, the EU is preparing a retaliatory package in the event that a deal is not reached before the August 1 deadline.
Last week’s US economic data delivered a mixed picture. While consumer sentiment improved, inflation accelerated in June, with the Consumer Price Index (CPI) nearing the 3% mark. The Producer Price Index (PPI) showed some signs of easing, but a robust Retail Sales report highlighted the continued resilience of American consumers despite the ongoing rise in prices.
Interest rate probability indicates that the Federal Reserve will maintain its current rates, with odds standing at 94% for a hold and 6% for a 25-basis-point rate cut at the July 30 meeting.
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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