India Gold price today: Gold steadies, according to FXStreet data
Gold prices remained broadly unchanged in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 9,572.61 Indian Rupees (INR) per gram, broadly stable compared with the INR 9,569.40 it cost on Thursday.
The price for Gold was broadly steady at INR 111,652.60 per tola from INR 111,615.60 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,572.61 |
| 10 Grams | 95,726.10 |
| Tola | 111,652.60 |
| Troy Ounce | 297,742.10 |
Daily Digest Market Movers: Gold price bulls not ready to give up despite modest USD bounce, upbeat market mood
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The US Dollar recovers slightly from a nearly two-week low touched the previous day. Moreover, Asian stocks rose for the fifth consecutive day and seem poised to register the best week since June, which, in turn, prompts some profit-taking around the Gold price on Friday.
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US President Donald Trump imposed additional levies on Indian imports as "punishment" for buying oil from Russia, taking the total tariffs to 50%. Trump had also announced this week that tariffs on semiconductors and pharmaceuticals will be imposed within the next week or so.
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The developments revive concerns about the potential economic fallout from a global trade war. Adding to this, official data on Thursday showed that China's central bank extended Gold purchases for the ninth straight month in July. This could act as a tailwind for the precious metal.
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Traders ramped up their bets that the US Federal Reserve will resume its rate-cutting cycle in September after the US Nonfarm Payrolls report last Friday. Adding to this, the US Jobless Claims rose for the second straight week and pointed to a deterioration in labor market conditions.
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In fact, the US Labor Department reported on Thursday that the number of Americans filing new applications for unemployment benefits ticked up to a seasonally adjusted 226K during the week ended August 2. This marked the highest level since the week ending July 5.
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According to the CME Group's FedWatch Tool, traders see over a 90% chance that the Fed will lower borrowing costs at the next monetary policy meeting in September. Moreover, the Fed is expected to deliver at least two 25-basis-point rate cuts by the end of this year.
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Meanwhile, Trump nominated Council of Economic Advisers Chairman Stephen Miran to serve out the rest of Fed Governor Adriana Kugler's term until January 31, 2026. Furthermore, Trump has shortlisted four candidates as replacements for Fed Chair Jerome Powell.
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This might hold back the USD bulls from placing aggressive bets and cap the upside, which could lend support to the commodity. In the absence of any relevant macro data, speeches from influential FOMC members might provide some impetus to the XAU/USD pair.
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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FXStreet Team
FXStreet
