India Gold price Monday: Gold rises, according to MCX data
Most recent article: India Gold price today: Gold extends gains, according to MCX data
Gold prices rose in India on Monday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 61,989 Indian Rupees (INR) per 10 grams, up INR 297 compared with the INR 61,692 it cost on Friday.
As for futures contracts, Gold prices decreased to INR 62,326 per 10 gms from INR 62,345 per 10 gms.
Prices for Silver futures contracts decreased to INR 70,136 per kg from INR 70,479 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,170 |
| Mumbai | 63,995 |
| New Delhi | 64,105 |
| Chennai | 64,140 |
| Kolkata | 64,165 |
Global Market Movers: Comex Gold price draws support from retreating US bond yields
- The US Dollar registered its first weekly decline for 2024, which, along with increasing demand for traditional safe-haven assets, lifted the Comex Gold price to over a two-week high on Friday.
- The growing conviction that the Federal Reserve will wait until the June policy meeting before cutting interest rates keeps a lid on any further appreciating move for the non-yielding yellow metal.
- The January FOMC meeting minutes released last week revealed that policymakers generally agreed that they needed greater confidence in falling inflation before considering cutting rates.
- Adding to this, a number of prominent Fed officials recently suggested that imminent interest rate cuts are unlikely as the central bank aims to bring inflation back to the 2% annual target.
- The US Treasury bond yields retreated from a fresh YTD peak touched last week, though remain well supported by the Fed's hawkish outlook and continue to act as a tailwind for the US Dollar.
- Investors, meanwhile, remain concerned about geopolitical risks stemming from conflicts in the Middle East and the Russia-Ukraine war, which could lend some support to the safe-haven XAU/USD.
- Israel expressed its intentions to expand its operations to destroy Hamas amid the uncertainty over a ceasefire, while Russia is preparing a new offensive against Ukraine starting in late May or summer.
- US and UK fighter planes carried out strikes on Houthi sites in Yemen on Saturday amid sustained attacks by the Iran-backed Houthi rebels on commercial vessels in the important Red Sea trade route.
- Ukraine's President Volodymyr Zelensky said on Sunday that Russia is preparing a new offensive against the country starting in late May or summer and Kyiv has a clear battlefield plan of its own.
- Investors now await this week's key US macro data, including the Core PCE Price Index, for clues about the Fed's future policy decision before placing fresh directional bets around the commodity.
(An automation tool was used in creating this post.)
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.
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