India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 9,442.06 Indian Rupees (INR) per gram, up compared with the INR 9,420.29 it cost on Monday.
The price for Gold increased to INR 110,133.10 per tola from INR 109,876.40 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,442.06 |
| 10 Grams | 94,423.13 |
| Tola | 110,133.10 |
| Troy Ounce | 293,677.60 |
Daily Digest Market Movers: Gold price draws support from the lack of follow-through USD buying
Gold price fell sharply on Monday as easing geopolitical tensions weighed heavily on traditional safe-haven assets. Investors remain hopeful that the upcoming US-Russian summit on Friday will increase the chances of ending the prolonged war in Ukraine. Furthermore, some follow-through US Dollar buying contributed to the precious metal's overnight slump of around 1.65%.
Traders are overwhelmingly betting that the US Federal Reserve will lower borrowing costs by 25 basis points in September and deliver at least two rate cuts by the end of this year. The expectations were lifted by a series of disappointing US economic data released recently, including the closely watched Nonfarm Payrolls report, which signaled that the economy could be weakening.
This, in turn, fails to assist the USD to build on a two-day-old positive move and helps revive demand for the non-yielding yellow metal during the Asian session on Tuesday. Traders, however, might refrain from placing aggressive directional bets and opt to move to the sidelines ahead of the US consumer inflation figures, which could provide more cues about the interest-rate outlook.
Traders this week will also confront the release of the US Producer Price Index (PPI) on Thursday, along with US monthly Retail Sales data and Michigan Consumer Sentiment Index on Friday. Apart from this, speeches from a slew of influential FOMC members will play a key role in driving the near-term USD price dynamics and provide some meaningful impetus to the XAU/USD pair.
On the trade-related front, US President Donald Trump signed an executive order on Monday extending a trade truce with China for another three months, easing market concerns about a trade war between the world's two largest economies. Earlier, Trump posted on his social media account, saying that gold would not be subject to tariffs, though he fell short of offering any further details.
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.)
Author
FXStreet Team
FXStreet
