India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 10,348.05 Indian Rupees (INR) per gram, broadly stable compared with the INR 10,350.48 it cost on Wednesday.
The price for Gold was broadly steady at INR 120,699.00 per tola from INR 120,728.70 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 10,348.05 |
| 10 Grams | 103,481.60 |
| Tola | 120,699.00 |
| Troy Ounce | 321,848.10 |
Daily Digest Market Movers: Gold bulls seem reluctant as modest USD strength offsets dovish Fed signals
The Federal Reserve, as was widely anticipated, lowered its benchmark rate for the first time since December, by 25 basis points, putting the overnight funds rate in a range between 4.00%-4.25%. Moreover, the US central bank saw the need for two more rate cuts this year amid worries about a softening US labor market. This, in turn, lifted the non-yielding Gold to a fresh all-time high, levels beyond the $3,700 mark on Wednesday.
US Treasury bond yields and the US Dollar recovered sharply after a brief slump that followed the announcement, as Fed Chair Jerome Powell said that risks to inflation are tilted to the upside. Speaking to reporters, Powell added that the central bank is in a meeting-by-meeting situation regarding the outlook for interest rates. This, in turn, weighed on the non-yielding yellow metal and led to a dramatic intraday turnaround.
Alongside the policy decision, the US central bank also published updated economic forecasts, and now expects the economy to grow by 1.6% this year, 1.8% in 2026, and 1.9% in 2027. Meanwhile, the Fed’s core PCE estimate, which excludes the more volatile food and energy components, implies a 3.1% pace of inflation this year, 2.6% next year, and 2.1% in 2027, while the long-term forecast remained unchanged at the 2% target.
On the geopolitical front, Russia's Defence Ministry said that our troops are advancing in practically all directions in the zone of the special military operation. Separately, German Chancellor Friedrich Merz warned that Russia has been testing the limits by violating NATO and EU airspace. Moreover, European Commission head Ursula von der Leyen wants the European Union to quicken the halt of Russian gas and oil imports.
The Israeli military has intensified its use of booby-trapped armoured vehicles to demolish residential neighbourhoods in Gaza City and is pressing ahead with a brutal offensive that has drawn widespread international condemnation. The EU is considering imposing tariffs on Israel and sanctioning extremist ministers in the government to pressure Israel to end the war in Gaza, which has now dragged on for 23 months.
Traders now look forward to Thursday's US economic docket – featuring the release of the usual Weekly Initial Jobless Claims and the Philly Fed Manufacturing Index – for some impetus later during the North American session. Apart from this, the Bank of England policy update could infuse some volatility and influence the XAU/USD pair ahead of the crucial Bank of Japan monetary policy decision on Friday.
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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