India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 9,420.74 Indian Rupees (INR) per gram, up compared with the INR 9,398.42 it cost on Tuesday.
The price for Gold increased to INR 109,881.30 per tola from INR 109,621.30 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,420.74 |
| 10 Grams | 94,207.35 |
| Tola | 109,881.30 |
| Troy Ounce | 293,017.80 |
Daily Digest Market Movers: Gold price bulls await Fed policy update before placing fresh bets
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Investor attention remains firmly on the upcoming Federal Reserve interest rate decision, due later this Wednesday. The US central bank is expected to keep its benchmark rate unchanged amid concern that US President Donald Trump's tariffs could push up consumer prices.
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Hence, the accompanying policy statement, which includes the updated “dots plot”, and Fed Chair Jerome Powell's comments during the post-meeting press conference will be scrutinized closely for cues about the future rate-cut path. The outlook, in turn, should influence the Gold price.
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Heading into the key central bank event risk, the disappointing US macro data released on Tuesday pointed to a softening economy and reaffirmed bets that the Fed will lower borrowing costs in September. This keeps a lid on the overnight US Dollar rally to the weekly peak.
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The US Census Bureau reported that Retail Sales declined by 0.9% in May compared to a contraction of 0.7% expected and a 0.1% dip in April. Moreover, US Industrial Production fell short of estimates and contracted 0.2% in May following a revised 0.1% rise a month earlier.
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Meanwhile, the conflict and continued aerial exchanges between Israel and Iran continued for the sixth straight day. Adding to this, Trump ramped up his rhetoric and demanded Iran’s unconditional surrender, fueling speculations over possible US involvement in the war.
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On the trade-related front, Trump told reporters on board Air Force One that tariffs on the Pharma sector are 'coming soon.' This adds a layer of uncertainty ahead of the July 9 deadline for higher reciprocal US tariffs and continues to weigh on investors' sentiment.
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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FXStreet Team
FXStreet
