Gold prices rose in India on Monday, according to data compiled by FXStreet.
The price for Gold stood at 9,010.69 Indian Rupees (INR) per gram, up compared with the INR 8,998.38 it cost on Friday.
The price for Gold increased to INR 105,098.90 per tola from INR 104,955.30 per tola on friday.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,010.69 |
| 10 Grams | 90,107.03 |
| Tola | 105,098.90 |
| Troy Ounce | 280,269.10 |
Daily Digest Market Movers: Gold price gains momentum on increased optimism of a Fed rate cut
“The slowdown in geopolitics has offered an opportunity for investors to start taking profit because of the forward-looking prospects of some kind of kinetic war with China and the developments in the Middle East,” said Daniel Pavilonis, senior market strategist at RJO Futures.
Top US President Donald Trump advisers said on Friday that agreements with as many as a dozen of the US’s largest trading partners are expected to be completed by the July 9 deadline, per Bloomberg.
US Personal Spending unexpectedly fell by 0.1% in May, the second decline this year, according to the US Bureau of Economic Analysis on Friday. Meanwhile, US Personal income dropped by 0.4% in May, the largest decrease since September 2021.
The US Personal Consumption Expenditures (PCE) Price Index rose by 2.3% YoY in May, compared to 2.2% in April (revised from 2.1%), the US Bureau of Economic Analysis reported on Friday. This reading came in line with market expectations.
The core PCE Price Index, which excludes volatile food and energy prices, climbed 2.7% in May, following the 2.6% increase (revised from 2.5%) seen in April. On a monthly basis, the PCE Price Index and the core PCE Price Index increased 0.1% and 0.2%, respectively.
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.
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