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 10,390.02 Indian Rupees (INR) per gram, down compared with the INR 10,414.59 it cost on Tuesday.
The price for Gold decreased to INR 121,187.20 per tola from INR 121,473.70 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 10,390.02 |
| 10 Grams | 103,900.20 |
| Tola | 121,187.20 |
| Troy Ounce | 323,166.10 |
Daily Digest Market Movers: Gold witnesses profit-taking as USD rebounds amid some repositioning ahead of the Fed
The US Dollar recovers slightly from a one-and-a-half-month low as bears opt to lighten their bets ahead of the crucial FOMC policy decision. This, in turn, prompts some profit-taking around the Gold price during the Asian session on Wednesday, especially after the recent blowout rally to a record high.
The US Census Bureau reported on Tuesday that Retail Sales rose strongly for the third month in a row in August and at a faster-than-anticipated pace, by 0.6%. The data suggested that US consumers remain resilient despite slowing economic activity, lingering inflation, and a weakening job market.
Investors, however, are all but certain that the US Federal Reserve will slash borrowing costs by at least 25 basis points at the end of a two-day policy meeting later today to support the softening labor market. Moreover, traders have been pricing in the possibility of two more rate cuts by the end of this year.
Apart from the crucial rate cut announcement, updated economic projections and Fed Chair Jerome Powell's comments at the post-meeting press conference will be scrutinized for cues about the rate-cut path. In the meantime, the dovish outlook might cap the USD and support the non-yielding yellow metal.
Furthermore, geopolitical risks stemming from the intensifying Russia-Ukraine war may limit losses for the safe-haven commodity. According to a report in The Moscow Times, Ukraine struck one of Russia’s largest oil refining complexes deep within its territory during an overnight attack.
Furthermore, the Russian defense ministry announced that its troops have taken control of the village of Novomykolaivka in Ukraine's Dnipropetrovsk region. The ministry's claim specifies that the captured village is located near the administrative border with the Donetsk region.
Meanwhile, Israel launched its long-planned ground assault on Gaza City and its troops have pressed deep into the densely populated city on Tuesday, which has been subjected to intense bombardment for weeks. This might further contribute to limiting deeper losses for the safe-haven XAU/USD.
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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