India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Monday, according to data compiled by FXStreet.
The price for Gold stood at 9,501.54 Indian Rupees (INR) per gram, broadly stable compared with the INR 9,507.68 it cost on Friday.
The price for Gold was broadly steady at INR 110,824.00 per tola from INR 110,895.70 per tola on friday.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,501.54 |
| 10 Grams | 95,015.29 |
| Tola | 110,824.00 |
| Troy Ounce | 295,547.60 |
Daily Digest Market Movers: Bulls turn cautious ahead of the crucial Fed policy decision on Wednesday
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Iran launched a new barrage of missiles and drones at Israel on Sunday evening, while the latter said that it began another series of strikes on military targets across Iran. Deadly strikes between Israel and Iran continued into Monday, with Israel vowing to intensify its operation against Iran.
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This comes on top of persistent uncertainty surrounding US President Donald Trump's trade policies and lifts the safe-haven Gold price to a nearly two-month peak during the Asian session on Monday. A combination of factors, however, keeps a lid on any further gains for the commodity.
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The markets, so far, have reacted little to the heightened military conflict between Israel and Iran, which is evident from a positive tone around the Asian equities. Adding to this, a modest US Dollar uptick contributes to capping the precious metal and prompts some intraday selling.
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Any meaningful USD upside, however, seems elusive as traders might opt to wait for more cues about the Federal Reserve's rate cut path before placing fresh directional bets. Hence, the focus remains on the crucial FOMC policy decision, scheduled to be announced on Wednesday.
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The US central bank is widely expected to keep interest rates unchanged. However, traders have been pricing in the possibility that the Fed would change its stance that interest rates will remain unchanged in the near term amid softer US inflation and signs of a cooling economy.
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The outlook will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the XAU/USD. In the meantime, the risk of a further escalation of geopolitical tensions in the Middle East might continue to act as a tailwind for the yellow metal.
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
