India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 10,086.42 Indian Rupees (INR) per gram, up compared with the INR 10,052.08 it cost on Thursday.
The price for Gold increased to INR 117,646.10 per tola from INR 117,245.50 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 10,086.42 |
| 10 Grams | 100,864.20 |
| Tola | 117,646.10 |
| Troy Ounce | 313,723.10 |
Daily Digest Market Movers: Gold continues to be underpinned by firming Fed rate cut expectations
US data released on Thursday pointed to further signs of a cooling labor market and boosted bets that the Federal Reserve will cut interest rates later this month. In fact, the Automatic Data Processing (ADP) reported that US private-sector employers added 54,000 jobs in August, down from a 106,000 (revised from 104,000) increase recorded in July and below expectations of 65,000.
Separately, a report from the US Department of Labour (DOL) showed that the number of Americans filing new applications for unemployment benefits increased to 237K for the week ending August 30. The reading was above the 230K estimated and higher than the previous week’s 229K. This overshadows the upbeat US ISM Services PMI, which rose to 52 in August from 50.1 in July.
US President Donald Trump signed an executive order on Thursday formalizing the lower tariffs on Japanese automobile imports and other products that were announced in July, boosting sentiment. Meanwhile, Trump has asked the Supreme Court for an immediate hearing in hopes of overturning an appeals court ruling that deemed most of his tariffs illegal, keeping uncertainties in play.
Traders now look forward to the US Nonfarm Payrolls (NFP) report, which is anticipated to show that the economy added 75K jobs in August and the Unemployment Rate edged higher to 4.3%, from 4.2% in July. Any significant divergence from the expected readings would lead to a repricing of future interest rate cuts by the Fed, which, in turn, will influence the US Dollar and the Gold price.
In the meantime, New York Fed President John Williams said on Thursday that the central bank must balance inflation and job market risks right now. Williams added that trade and immigration factors are slowing activity, and the GDP will grow 1.25-1.5% this year. He expects the jobless rate to rise to about 4.5% next year and gradual interest rate cuts over time if the economy meets forecasts.
Chicago Fed President Austan Goolsbee crossed the wire this Friday, noting that the labor market might be deteriorating and inflation might be picking back up. Rates are better indicators for the labor market than raw job growth, and there is a bit of wait-and-see because of the uncertainty, Goolsbee added further. The hawkish-sounding remarks, however, do little to provide any impetus to the Greenback.
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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