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 9,347.61 Indian Rupees (INR) per gram, down compared with the INR 9,368.16 it cost on Thursday.
The price for Gold decreased to INR 109,028.70 per tola from INR 109,268.40 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,347.61 |
| 10 Grams | 93,476.53 |
| Tola | 109,028.70 |
| Troy Ounce | 290,743.50 |
Daily Digest Market Movers: Gold price is pressured by a stronger USD and receding safe-haven demand
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Data released on Thursday pointed to a still resilient US labor market and reinforced the view that the Federal Reserve will hold interest rates at the upcoming monetary policy meeting next week. The US Department of Labour reported that the number of US citizens submitting new applications for unemployment insurance fell for the sixth straight week, to 217K during the week ended July 19. This marked the lowest reading since mid-April.
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Furthermore, the S&P Global's US Composite PMI climbed to 54.6 in July from 52.9 in the previous month, marking the 30th straight month of expansion. The growth was concentrated in the services sector, which offsets weakness in the manufacturing sector. The Services PMI rose from 52.9 to 55.2, marking the strongest expansion since the start of the year, while the gauge for the manufacturing sector contracted for the first time since December 24.
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Further details of the report revealed that employment strength across both the manufacturing and services sectors continues to support near-term stability. Adding to this, intensifying price pressures suggest that inflation could accelerate in the second half of the year, mainly because of tariffs on imports. This might further force the Fed to maintain the status quo on rates despite US President Donald Trump's repeated calls to lower borrowing costs.
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Trump dialed up the pressure on Fed Chair Jerome Powell during a rare presidential visit to the central bank's headquarters. 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 decision on July 30. This could act as a headwind for the USD and offer support to the non-yielding Gold price amid the rising Thailand-Cambodia border dispute.
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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