India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 9,150.83 Indian Rupees (INR) per gram, down compared with the INR 9,162.40 it cost on Monday.
The price for Gold decreased to INR 106,734.60 per tola from INR 106,868.40 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,150.83 |
| 10 Grams | 91,509.40 |
| Tola | 106,734.60 |
| Troy Ounce | 284,622.00 |
Daily Digest Market Movers: Gold price bulls seem reluctant to add to positions amid receding safe-haven drivers
US President Donald Trump agreed on Sunday to postpone the proposed 50% tariffs on the European Union from June 1 until July 9. The announcement followed a call with EU President Ursula von der Leyen, who said that the bloc was ready to move quickly in trade talks with the US but needed more time to strike a deal.
The development offered some relief to markets, though investors remain on edge amid the uncertainty surrounding Trump's trade policies and deep-rooted tensions between the US and China – the world's two largest economies. Apart from this, US fiscal concerns and geopolitical risks lend some support to the Gold price.
Trump’s dubbed “Big, Beautiful Bill”, which would add an estimated $4 trillion to the federal primary deficit over the next decade, was passed in the lower house last week and will be voted on in the Senate this week. This fuels worries that the US budget deficit could worsen at a faster pace than previously expected.
Meanwhile, signs of easing inflationary pressure in the US lifted market bets that the Federal Reserve will eventually step in to support economic growth. In fact, traders are pricing in the possibility of at least two 25 basis point Fed rate cuts by the year-end, which keeps the US Dollar depressed near the monthly low.
Russia launched the largest aerial assault since its full-scale invasion of Ukraine in February 2022. In response, Trump said that he was considering new sanctions against Russia and called Russian President Vladimir Putin crazy. Moreover, the continuous Israeli strikes on Gaza keep the geopolitical risk in play.
Traders now look forward to Tuesday's US macro releases– Durable Goods Orders and the Conference Board's Consumer Confidence Index. The focus, however, will be on FOMC minutes, due on Wednesday, which might offer some cues about the Fed's rate-cut path and provide some impetus to the USD.
This week's US economic docket also features the release of the Prelim Q1 GDP and the Personal Consumption Expenditure (PCE) Price Index on Thursday and Friday, respectively. This, in turn, should infuse some volatility around the XAU/USD pair and allow traders to grab meaningful opportunities.
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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