Most recent article: India Gold price today: Gold surges, according to MCX data
Gold prices rose in India on Thursday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 66,746 Indian Rupees (INR) per 10 grams, up INR 575 compared with the INR 66,171 it cost on Wednesday.
As for futures contracts, Gold prices increased to INR 67,034 per 10 gms from INR 66,944 per 10 gms.
Prices for Silver futures contracts decreased to INR 74,423 per kg from INR 74,662 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 69,130 |
| Mumbai | 68,825 |
| New Delhi | 68,850 |
| Chennai | 69,120 |
| Kolkata | 68,940 |
Global Market Movers: Comex Gold price keeps its range, awaiting Friday’s US PCE data
- Federal Reserve (Fed) Governor Christopher Waller said on Wednesday that he was in no hurry to cut rates in the wake of hotter inflation readings in recent months, boosting the US Dollar and capping gains for the Comex Gold price.
- Waller, however, noted that further expected progress on lowering inflation will make it appropriate for the Fed to start cutting interest rates later this year, which is seen acting as a tailwind for the non-yielding yellow metal.
- Moreover, the Fed last week projected three interest rate cuts of 25 basis points each by the end of this year, and the markets are currently pricing in a greater chance of the first move at the June FOMC monetary policy meeting.
- Apart from this, geopolitical risks stemming from the protracted Russia-Ukraine war and the ongoing conflicts in the Middle East should help limit any meaningful corrective decline for the safe-haven precious metal.
- Traders now look to Thursday's US economic docket – featuring the release of the final Q4 GDP print, the usual Weekly Initial Jobless Claims, Pending Home Sales and the revised Michigan Consumer Sentiment Index.
(An automation tool was used in creating this post.)
Gold FAQs
Gold prices rose in India on Thursday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 66,746 Indian Rupees (INR) per 10 grams, up INR 575 compared with the INR 66,171 it cost on Wednesday.
As for futures contracts, Gold prices increased to INR 67,034 per 10 gms from INR 66,944 per 10 gms.
Prices for Silver futures contracts decreased to INR 74,423 per kg from INR 74,662 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 69,130 |
| Mumbai | 68,825 |
| New Delhi | 68,850 |
| Chennai | 69,120 |
| Kolkata | 68,940 |
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.
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