Gold prices rose in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 11,880.98 Indian Rupees (INR) per gram, up compared with the INR 11,759.03 it cost on Tuesday.
The price for Gold increased to INR 138,577.50 per tola from INR 137,155.00 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 11,880.98 |
| 10 Grams | 118,809.80 |
| Tola | 138,577.50 |
| Troy Ounce | 369,540.60 |
Daily market movers: Gold advances boosted by Powell’s dovish remarks
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Powell said that based on the data that they have, “the outlook for employment and inflation does not appear to have changed much since our September meeting four weeks ago.” Furthermore, added that data shows that economic activity might be firmer than expected. He added that risks to the labor market had increased, along with inflationary pressures.
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Powell said that elevated inflation is due to rising goods prices, which reflect “tariffs rather than broader inflationary pressures.”
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The Fed will receive an update on consumer price inflation on October 24. The Bureau of Labor Statistics announced that it will release its latest Consumer Price Index (CPI) report amid the ongoing shutdown.
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The NFIB Business Optimism Index tumbled 2 points to 98.8 last month, the first decline in three months. The NFIB Uncertainty Index jumped 7 points from August to 100, the fourth highest reading in over 51 years.
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The NFIB Chief Economist Bill Dunkelberg said “Uncertainty is very high, the (Trump) administration has a lot of policy changes still in the air, lots of moving parts.” Despite this, he revealed that economic growth is solid, driven “perhaps” by AI-related investments, then “by spending that impacts Main Street firms.”
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Bullion prices are underpinned by US Dollar weakness. The US Dollar Index (DXY), which tracks the performance of the buck’s value against a basket of six currencies, sheds 0.25% of its value, down to 99.00.
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Conversely, the US 10-year Treasury note yield dives three basis points to 4.029%. US real yields — which correlate inversely to Gold prices — are also diving nearly three and a half bps to 1.728%.
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.)
