India Gold price Thursday: Gold eases, according to MCX data
Most recent article: India Gold price today: Gold falls, according to MCX data
Gold prices fell in India on Thursday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 61,960 Indian Rupees (INR) per 10 grams, down INR 20 compared with the INR 61,980 it cost on Wednesday.
As for futures contracts, Gold prices increased to INR 62,286 per 10 gms from INR 62,108 per 10 gms.
Prices for Silver futures contracts increased to INR 71,128 per kg from INR 70,609 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,135 |
| Mumbai | 64,000 |
| New Delhi | 64,120 |
| Chennai | 64,100 |
| Kolkata | 64,155 |
Global Market Movers: Comex Gold price draws support from geopolitical risks and weaker USD
- The recent attacks by Yemen's Houthi rebels on commercial vessels in the Red Sea and Bab al-Mandab strait stoke worries about a further escalation of military action in the Middle East, underpinning the safe-haven Gold price.
- The US Central Command said two anti-ship ballistic missiles were launched from the Iranian-backed Houthi terrorist group, which claims to support Palestinian civilians amid Israel’s retaliatory military campaign in the Gaza Strip.
- Fighting between Israel and Hamas has shown no sign of abating despite diplomatic efforts by several countries, with the former warning of a potential ground invasion of Rafah where more than 1.5 million Palestinians are sheltering.
- The US Dollar languishes near its lowest level in more than two weeks and lends additional support to the precious metal, though hawkish-sounding FOMC meeting minutes keep a lid on any meaningful appreciating move.
- The January FOMC meeting minutes revealed that policymakers agreed that they needed greater confidence in falling inflation before considering cutting rates and reinforced expectations that the Fed will keep rates higher for longer.
- Market participants pushed back expectations on when the Fed will begin cutting rates to June, which, along with a weaker 20-year bond auction, push the yield on long-term US Treasury bonds higher across the board.
- The yield on the benchmark 10-year US government bond advanced to its highest level since November 30, which helps limit the downside for the Greenback and contributes to capping the non-yielding yellow metal.
- Traders now look to the US economic docket – featuring the usual Weekly Initial Jobless Claims, the flash PMI prints and Existing Home Sales data – for some impetus ahead of Fed Governor Philip Jefferson's speech.
(An automation tool was used in creating this post.)
Gold FAQs
Why do people invest in Gold?
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.
Who buys the most Gold?
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.
How is Gold correlated with other assets?
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.
What does the price of Gold depend on?
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.
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