On Thursday, gold prices saw an uptick, as noted by data from FXStreet. The price for gold per gram increased to INR 9,527.26, up from INR 9,501.11 the day before. Similarly, the value of gold per Tola rose from INR 110,819.00 to INR 111,124.10.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,527.26 |
| 10 grams | 95,272.56 |
| Tola | 111,124.10 |
| Troy ounce | 296,330.60 |
Daily Digest Market Movers: Current trends fueled by increasing safe haven demand amid tariff concerns
US President Donald Trump approved an executive order on Wednesday that introduced a 25% tariff on Indian imports in reaction to oil purchases from Russia, ultimately raising the total tariff to 50%. Additionally, there are indications that a 15% tariff could be placed on all Japanese imports.
This week, Trump also mentioned upcoming announcements regarding US tariffs on semiconductors and drug imports, which are expected next week. This could revive fears of an economic downturn tied to the global trade war, which, in turn, has contributed to rising gold prices as investors seek safety.
Traders are now factoring in a greater likelihood of interest rate cuts this year, influenced by disappointing data from the US non-farm payroll report last Friday and a weak US ISM service PMI reading on Tuesday.
Market indicators suggest that there’s over a 90% chance the US central bank will lower borrowing costs at September’s monetary policy meeting. Furthermore, at least two additional 25-basis-point cuts are anticipated by the end of the year.
While the dovish expectations from the Fed have not significantly bolstered the US dollar from its recent lows, they are likely to benefit gold. Yet, a positive sentiment following gains on Wall Street last night has also buoyed precious metals.
Traders are keenly awaiting the latest US unemployment claims to be released later today and are closely watching comments from key FOMC members, which may influence the US dollar and create short-term trading opportunities for the XAU/USD pair.
FXSTREET calculates gold prices in India by adjusting international rates (USD/INR) to local currency values and measurement units. These prices are updated daily based on market conditions at the time of publication and are meant for reference; local rates may vary slightly.
Gold FAQ
Gold has been significant in human history, commonly used as a measure of value and exchange. It’s not just valued for its beauty but also as a safe haven asset during uncertain times, viewed as a worthwhile investment against inflation and currency depreciation since it isn’t tied to any particular government or issuer.
Central banks, as major holders of currency, often buy gold to stabilize their reserves and boost perceptions of economic strength. In 2022, central banks added 1,136 tonnes of gold, valued around $70 billion, marking the highest annual purchases on record. Countries like China, India, and Turkey are aggressively increasing their gold reserves.
Gold prices typically move in opposition to the US dollar and US Treasury securities, which are also considered safe havens. As the dollar weakens, gold often rises, allowing for diversification of assets during turbulent times. Alternatively, a rally in stocks can dampen gold prices, while downturns in risky markets can boost demand for precious metals.
Numerous factors can influence gold prices. Fears of geopolitical instability or a recession can spike demand for gold. Since it doesn’t yield interest, lower rates generally lead to higher gold prices, while increased rates can weigh on them. Still, the behavior of the US dollar is crucial, as gold’s price is dollar-based (XAU/USD). A stronger dollar usually suppresses gold prices, whereas a weaker dollar tends to drive them up.
