Gold prices fell in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 9,221.16 Indian Rupees (INR) per gram, down compared with the INR 9,237.28 it cost on Wednesday.
The price for Gold decreased to INR 107,553.80 per tola from INR 107,743.10 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,221.16 |
| 10 Grams | 92,211.62 |
| Tola | 107,553.80 |
| Troy Ounce | 286,807.10 |
Gold daily market movers: Hovers near $3,350 awaiting a fresh catalyst
Gold price continued to trade sideways, capped by the $3,300-$3,380 range on Wednesday. Bullion’s spike happened on reports of Powell’s firing. Bloomberg revealed that “A White House official, speaking on the condition of anonymity earlier Wednesday, said they expected Trump to move soon against the Fed chief. That was also the impression of some lawmakers following a Tuesday evening meeting, where Trump polled them on the possibility of moving against Powell.”
When asked on Wednesday, Trump said that while “it’s highly unlikely,” he could still see removing the Fed chair for “fraud.”
The US Produce Price Index (PPI) in June dipped from 2.6% to 2.3% YoY, below estimates of 2.5%. Excluding volatile items, PPI cooled from 3% to 2.6%, below forecasts of 2.7%.
Although factory inflation eased, the latest consumer inflation report in the US showed that prices jumped in June and are closing in on the 3% threshold, far from the Fed’s 2% goal.
US Treasury yields dipped on Wednesday, with the US 10-year Treasury yield, which usually correlates negatively with Gold, falling three basis points (bps) to 4.459%.
Interest rate probability indicates that the Federal Reserve will maintain its current rates, with odds standing at 95% for a hold and 5% for a 25-basis-point rate cut at the July 30 meeting. Money markets had priced in less than 50 basis points (bps) of easing, with investors pricing in over 46 bps of rate cuts toward the end of the year.
US President Trump stated that another deal with India is forthcoming. He added that they would deal with Japan with the tariffs letter. He announced on Tuesday that the US reached an agreement with Indonesia, in which the latter will pay 19% tariffs, while US producers will pay 0%.
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.)
