Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 9,078.38 Indian Rupees (INR) per gram, down compared with the INR 9,162.60 it cost on Monday.
The price for Gold decreased to INR 105,888.50 per tola from INR 106,870.80 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,078.38 |
| 10 Grams | 90,806.52 |
| Tola | 105,888.50 |
| Troy Ounce | 282,373.60 |
Daily Digest Market Movers: Gold price is pressured by receding safe-haven demand and a modest USD uptick
China's recent moves to exempt certain US goods from its retaliatory tariffs showed a willingness to de-escalate tensions between the world's two largest economies. Moreover, US Treasury Secretary Scott Bessent said on Monday that many top US trading partners have made "very good" tariff proposals.
Signs of trade progress support the upbeat market mood. Meanwhile, the US Dollar regains traction and drives flows away from the safe-haven Gold price.
Investors, however, remain on the edge on the back of mixed signals regarding the state of negotiations between the US and China. In fact, US President Donald Trump said last week that trade talks with China were underway, though China has denied that any tariff negotiations were taking place.
Meanwhile, traders expect the Federal Reserve to resume its rate-cutting cycle in June. Moreover, the current market pricing indicates the possibility of at least three rate cuts by the end of this year. Lower borrowing costs could help the non-yielding yellow metal to maintain a floor in the near term.
Russian President Vladimir Putin declared a 72-hour unilateral ceasefire in the Ukraine conflict from May 8, though Ukraine’s President Volodymyr Zelensky dismissed the three-day truce. Moreover, North Korea's involvement in the Russia-Ukraine war keeps the geopolitical risk premium in play.
Traders now look forward to the release of the US JOLTS Job Openings data for some impetus later this Tuesday. Apart from this, US Personal Consumption Expenditures on Wednesday, and the Nonfarm Payrolls (NFP) report on Friday could provide a fresh insight into the Fed's policy outlook.
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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