India Gold price today: Gold falls, according to FXStreet data

FXStreet Team FXStreet

Gold prices fell in India on Wednesday, according to data compiled by FXStreet.

The price for Gold stood at 8,873.78 Indian Rupees (INR) per gram, down compared with the INR 8,934.97 it cost on Tuesday.

The price for Gold decreased to INR 103,501.30 per tola from INR 104,212.00 per tola a day earlier.

Unit measure	Gold Price in INR
1 Gram	8,873.78
10 Grams	88,737.31
Tola	103,501.30
Troy Ounce	276,000.00

Daily Digest Market Movers: Gold price continues to be pressured by trade optimism

US President Donald Trump said on Monday that he does not see tariffs on Chinese imports returning to 145% after the 90-day pause. In a Fox News interview earlier this Wednesday, Trump said that the relationship with China is excellent, adding to the trade optimism and undermining the safe-haven Gold price during the Asian session.

On the geopolitical front, Russia and Ukraine are set for their first high-level face-to-face talks since 2022 in Istanbul this week amid increasing demand for Russia to agree to a 30-day ceasefire. On the US side, Secretary of State Marco Rubio and special envoys Steve Witkoff and Keith Kellogg are expected to attend the negotiations.

The Israeli military said it intercepted a hypersonic ballistic missile fired by the Iran-aligned Houthis militia group towards Ben Gurion Airport near Tel Aviv from Yemen on Tuesday evening. This keeps geopolitical risks in play and might hold back traders from placing aggressive bearish bets around the XAU/USD pair.

The US Bureau of Labor Statistics (BLS) reported that the headline Consumer Price Index (CPI) edged lower to the 2.3% YoY rate in April from 2.4% in the previous month. Meanwhile, the core CPI, which excludes volatile food and energy prices, matched consensus estimates and rose 2.8% on a yearly basis in April.

Traders are still pricing in the possibility that the Federal Reserve will lower borrowing costs by 56 basis points in 2025. This fails to assist the US Dollar to attract any meaningful buyers following Tuesday's pullback from a one-month high and should contribute to limiting deeper losses for the non-yielding yellow metal.

There isn't any relevant market-moving economic data due for release from the US on Wednesday, leaving the USD at the mercy of scheduled speeches from Fed officials. Apart from this, the broader risk sentiment will play a key role in producing short-term trading opportunities around the commodity.

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

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.

(An automation tool was used in creating this post.)

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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