Gold prices in India held steady on Tuesday, as reported by FXStreet.
The price of gold was INR 8,839.07 per gram, showing minimal movement from INR 8,830.46 the previous day.
Prices for gold remained nearly the same at INR 103,099.20 per TOLA, compared to INR 102,996.80 just a day earlier.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 8,839.07 |
| 10 grams | 88,391.52 |
| Tola | 103,099.20 |
| Troy ounce | 274,926.00 |
Daily Digest Market Movers: Gold Prices Pressure High Yields in the US Treasury
Yields on US Treasury bonds are on the rise, with the 10-year Treasury yield increasing by 4.453%, up 7 basis points. Meanwhile, the actual yield stands stable at 2.163%, as reflected by the yield on the US 10-year Treasury Inflation Protection Securities.
Economists predict that the US Consumer Price Index (CPI) for April will remain unchanged at 2.4% year-on-year. The core CPI, which excludes volatile items, is also expected to hold steady at 2.8% year-on-year.
The World Gold Council reported that the People’s Bank of China (PBOC) added two tonnes of gold reserves in April, marking six consecutive months of increases. The National Bank of Poland raised its reserves by 12 tons, bringing the total to 509 tons. Similarly, the Czech National Bank increased its reserves by 2.5 tons in April.
The swap market is currently pricing in the Federal Reserve’s first 25 basis points (BPS) rate cut anticipated in July, with expectations for another cut later in the year.
FXStreet calculates gold prices in India by adapting international rates (USD/INR) to local units. These prices are updated daily based on market conditions and are intended for reference, noting that local rates may vary slightly.
Gold FAQ
Gold has been significant throughout history as a medium of value and exchange. Beyond its brilliance, it’s often seen as a safe haven asset, especially in turbulent times. Many consider gold a hedge against inflation and declining currencies since it isn’t reliant on any specific issuer.
Central banks are the highest holders of gold, purchasing it to support currency during uncertain periods and to bolster the economy’s perceived strength. In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, marking a record year for purchases. Institutions in emerging economies like China, India, and Türkiye are swiftly increasing their holdings.
Gold typically moves inversely to the US dollar and US Treasuries, which are major reserve assets. When the dollar weakens, gold values generally rise, providing investors and central banks with a way to diversify during instability. Likewise, while strong stock markets can depress gold prices, downturns in risk assets often favor precious metals.
Various elements can drive gold prices. Geopolitical tensions or fears of a recession can lead to rapid price increases. Gold, which doesn’t yield income, tends to thrive in lower interest environments; however, higher rates usually weigh it down. Still, much of the movement is closely linked to the behavior of the US dollar, as gold prices are expressed in dollars. A strong dollar typically keeps gold prices in check, while a weaker dollar can elevate them.
