According to data from FXStreet, prices fell on Friday.
The price of gold was noted at 9,347.61 Indian Rupees (INR) per gram, down from 9,368.16 the previous day.
For Tola, gold prices decreased to 109,028.70 from 109,268.40 just a day earlier.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,347.61 |
| 10 grams | 93,476.53 |
| Tola | 109,028.70 |
| Troy ounce | 290,743.50 |
Daily Digest Market Movers: Gold Prices under Pressure from Stronger US Dollar and Safe-Haven Demand
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Data released on Thursday highlighted the resilience of the U.S. labor market, which suggests that the Federal Reserve may keep interest rates steady during next week’s monetary policy discussions. The U.S. Department of Labor reported that new unemployment insurance claims have dropped for six straight weeks, falling to 217,000 for the week ending July 19th.
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S&P Global’s U.S. combined PMI rose to 54.6 in July from 52.9 in June, marking the 30th consecutive month of growth. This growth was mainly in the services sector, which compensated for a downturn in manufacturing. The services PMI improved from 52.9 to 55.2, showing the strongest growth rate since the start of the year, while manufacturing indicators declined for the first time since December 24th.
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The report also indicated continued strength in employment across both manufacturing and services sectors, providing some stability in the short term. However, rising price pressures point to a potential increase in inflation later this year, largely due to tariffs on imports. This situation might require the Fed to maintain its current stance, despite President Trump’s calls for lower borrowing costs.
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During an unusual visit to the Federal Reserve headquarters, Trump applied pressure on Chairman Jerome Powell. Additionally, Governor Chris Waller and Trump appointee Vice-Chairman Michelle Bowman expressed the need for a rate cut ahead of the July 30 policy decision. This may create headwinds for the U.S. dollar, while potentially benefiting interest-free gold prices, especially considering the rising tensions along the Thai-Cambodia border.
FXStreet calculates gold prices in India by adjusting international rates (USD/INR) to local currency and measurement units. These prices are updated daily based on real-time market rates at the time of publication. They are meant for reference only, and local prices may vary slightly.
Gold FAQ
Gold has been significant in human history, often used as a means of value and exchange. Besides its allure, it’s also seen as a safe-haven asset, particularly during turbulent times. People often view it as a hedge against inflation and currency depreciation since it’s not tied to any specific issuer or government.
Central banks typically hold large amounts of gold to support their currencies during tough times, aiming to diversify reserves and bolster the perception of economic strength. In 2022, central banks reportedly added 1,136 tonnes of gold, worth approximately $70 billion, marking the highest annual purchasing as recorded. Emerging economies like China, India, and Türkiye are particularly ramping up their gold reserves.
There’s an inverse relationship between gold prices and the U.S. dollar, which is an important reserve and safe-haven asset. When the dollar weakens, gold prices typically increase, allowing both investors and central banks to diversify during uncertain times. Conversely, gold prices often decline when the stock market performs well.
Various factors can influence gold prices—geopolitical uncertainty or fears of a recession can quickly boost them. Gold tends to rise when interest rates are low, but higher interest rates can press down its price. A lot of movement in gold prices depends on the dollar’s fluctuations since gold is priced in dollars. Typically, a stronger dollar leads to lower gold prices, while a weaker dollar can increase them.
