Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 9,211.57 Indian Rupees (INR) per gram, broadly stable compared with the INR 9,203.14 it cost on Wednesday.
The price for Gold was broadly steady at INR 107,441.90 per tola from INR 107,343.70 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,211.57 |
| 10 Grams | 92,115.66 |
| Tola | 107,441.90 |
| Troy Ounce | 286,511.90 |
Daily Digest Market Movers: Gold price draws support from a weaker USD and Fed rate cut bets
US President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell for not cutting rates and said he was considering several candidates to replace him. In fact, Powell reiterated on Wednesday that the central bank is well-positioned to wait to cut interest rates until the inflationary effects of Trump’s wide-ranging tariffs are better known.
The Trump-Powell standoff comes on top of bets that the Fed would cut interest rates by at least 50 basis points before the end of the year. This, in turn, drags the US Dollar to over a three-year low and assists the non-yielding Gold price to attract some buyers for the second straight day on Thursday, though the intraday uptick seems to lack bullish conviction.
The fragile truce between Israel and Iran continues to hold, with Trump declaring victory despite the uncertainty regarding the extent of the damage to Iran’s uranium enrichment assets. Nevertheless, the optimism holds back the XAU/USD bulls from placing aggressive bets and warrants some caution before positioning for any further appreciating move.
Moving ahead, traders now look to the US economic docket – featuring the release of the final Q1 GDP print, the usual Weekly Jobless Claims, Durable Goods Orders, and Pending Home Sales. Apart from this, investors will closely scrutinize comments from FOMC members for cues about the Fed’s rate-cut path, which should influence the commodity.
The market attention will then shift to the US Personal Consumption and Expenditure (PCE) Price Index, due on Friday. The crucial inflation data will play a key role in determining the next leg of a directional move for the USD and influence the bullion, which, so far, has been struggling to register any meaningful recovery from over a two-week low.
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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