Gold prices fell in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 9,163.75 Indian Rupees (INR) per gram, down compared with the INR 9,272.21 it cost on Tuesday.
The price for Gold decreased to INR 106,883.00 per tola from INR 108,148.30 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,163.75 |
| 10 Grams | 91,636.47 |
| Tola | 106,883.00 |
| Troy Ounce | 285,027.20 |
Daily Digest Market Movers: Gold price bulls remain on the defensive amid hopes for a US-China trade deal
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US equity indices rose sharply on Tuesday after US President Donald Trump backtracked on his criticism of Federal Reserve Chair Jerome Powell and said that he has no intention of firing him before the expiry of his term in May 2026.
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Adding to this, upbeat comments from Trump administration officials about US-China trade talks further boosted investors' confidence and prompted some profit-taking around the safe-haven Gold price following the recent record run.
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US Treasury Secretary Scott Bessent said that the tariff war between the US and China would de-escalate soon. Later, White House spokeswoman Karoline Leavitt told reporters that the Trump administration is setting the stage for a deal.
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Russian President Vladimir Putin said that he had a positive attitude towards any peace initiatives. In response, Ukrainian President Volodymyr Zelenskyy said on Tuesday that we are ready to sit down in any format after the ceasefire.
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Meanwhile, Trump's rapidly shifting stance on trade policies has eroded investors' trust and weakened confidence in the US economy. This fails to assist the US Dollar in preserving modest Asian session gains and supports the XAU/USD pair.
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Furthermore, the markets have been pricing in the possibility that the Federal Reserve will resume its rate-cutting cycle in June and lower borrowing costs at least three times by the end of this year, further benefiting the non-yielding yellow metal.
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Traders now look forward to the release of global flash PMIs for a fresh insight into global economic health. This, along with trade-related developments, will influence the risk sentiment and provide some impetus to the precious metal.
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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