India Gold price today: Gold rises, 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 71,326 Indian Rupees (INR) per 10 grams, up INR 420 compared with the INR 70,906 it cost on Friday.
As for futures contracts, Gold prices increased to INR 71,189 per 10 gms from INR 70,646 per 10 gms.
Prices for Silver futures contracts increased to INR 82,308 per kg from INR 81,026 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 73,850 |
| Mumbai | 73,640 |
| New Delhi | 73,785 |
| Chennai | 73,800 |
| Kolkata | 73,840 |
Global Market Movers: Comex Gold price recovers some lost ground amid downbeat US data
- The US Nonfarm Payrolls (NFP) rose by 175K in April from 315K in March (revised from 303K), missing the market expectation of 243K.
- The Unemployment Rate rose to 3.9% in April from 3.8% in the previous reading, while the Average Hourly Earnings dropped to 3.9% YoY in April from 4.1% in March.
- The US ISM Services PMI slipped into contractionary territory, falling from 51.4 in March to 49.4 in April, below the market estimate of 52.0.
- Fed Governor Michelle Bowman cautioned that there is a real risk that inflation could remain elevated for much longer than many are expecting, adding that she’s willing to hike rates if inflation stalls or reverses.
- Chicago Fed Austan Goolsbee stated that the latest US employment report was solid, emphasizing that current monetary policy is restrictive.
- Fed easing expectations have adjusted, with the odds of a September rate cut rising to nearly 90%, up from 55% ahead of the NFP report, according to the CME FedWatch tool.
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.
Author
FXStreet Team
FXStreet
