India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 12,322.78 Indian Rupees (INR) per gram, up compared with the INR 12,225.19 it cost on Thursday.
The price for Gold increased to INR 143,737.90 per tola from INR 142,592.20 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 12,322.78 |
| 10 Grams | 123,234.40 |
| Tola | 143,737.90 |
| Troy Ounce | 383,281.10 |
Daily Digest Market Movers: Gold buying remains unabated amid economic risks, Fed rate cut bets
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US-China trade tensions escalated in recent weeks after US President Donald Trump's threat to raise tariffs on Chinese goods to 100% in retaliation for the latter's enhanced restrictions on the export of rare earths. Moreover, both countries announced the tit-for-tat port fees on vessels linked to each other’s fleets, fueling concerns about an all-out trade war.
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Adding to this, concerns that a prolonged US government shutdown would affect the economic performance, assisted the safe-haven Gold to extend its recent record-setting run. The US Senate rejected a House Republicans’ short-term funding bill, aimed to end the government closure, for the tenth time on Thursday, underscoring a deadlock in Congress.
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On the geopolitical front, Russia launched hundreds of drones and dozens of missiles, as well as glide bombs on Thursday, hitting gas facilities in eastern Ukraine. Meanwhile, US President Donald Trump said that he will meet Russian President Vladimir Putin in Budapest, Hungary, to work toward ending the three-and-a-half-year war in Ukraine.
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US Federal Reserve Chair Jerome Powell struck a dovish tone earlier this week, saying that the labor market remained mired in its low-hiring, low-firing doldrums through September. Moreover, Fed Governor Christopher Waller noted on Thursday that inflation remains on its path to the central bank's 2% target and is not a barrier to interest rate cuts.
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Separately, Minneapolis Fed President Neel Kashkari said that the US job market was slowing down, and it was too soon to know the effect of tariffs on inflation. Nevertheless, traders now seem to have fully priced in a 25-basis-point rate cut at each of the October and December meetings, which continues exerting downward pressure on the US Dollar.
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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