India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 10,740.60 Indian Rupees (INR) per gram, broadly stable compared with the INR 10,735.92 it cost on Tuesday.
The price for Gold was broadly steady at INR 125,275.20 per tola from INR 125,220.20 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 10,740.60 |
| 10 Grams | 107,405.10 |
| Tola | 125,275.20 |
| Troy Ounce | 334,074.50 |
Daily market movers: Gold price advances amid neutral Powell stance
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The US Dollar (USD) falls following Powell, undermined also by falling US Treasury yields hinting that market participants are pricing in rate cuts. The US Dollar Index (DXY), which tracks the American currency value against a basket of six peers, tumbles 0.07% to 97.22.
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US Treasury yields are falling with the 10-year Treasury note down three bps at 4.114%. US real yields — which correlate inversely to Gold prices —dove nearly three-and-a-half bps to 1.744%.
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Chair Powell revealed that the policy path is difficult, noting that they must look at both inflation and employment goals “equally.” He added that he still sees downside risks in the labor market. Regarding inflation, he says it's coming into better balance and that the Fed Beige Book showed the economy is growing modestly.
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Earlier, US economic data revealed that manufacturing and services activity slowed down in September. The S&P Global Manufacturing PMI dipped to 52.0 from 53.0 reported in the previous print. Meanwhile, the Services PMI fell to 53.9 from 54.5 in August.
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S&P Global revealed that prices paid rose to 62.6 in September, up from 60.8 last month as business mentioned tariffs “as the principal cause of further cost increases.”
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The Fed is expected to cut rates 25 bps at the October 19 meeting, as revealed by data from Prime Market Terminal. Odds are at 91%.
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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