Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The gold price was INR 8,403.31 (INR) per gram, rising compared to the cost of 8,368.14 on Monday.
Gold prices increased to 98,014.58 per TOLA at 97,604.33 per TOLA a day ago.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 8,403.31 |
| 10 grams | 84,033.12 |
| Tora | 98,014.58 |
| Troy ion | 261,372.40 |
Daily Digest Market Mover: Gold Price continues to pull support from a combination of factors
-
The Israeli Defense Force (IDF) said it was carrying out a “massive strike” in the Gaza Strip and targeting what is known as “terrorist targets” belonging to Hamas. This comes after talks to extend the Gaza ceasefire failed to reach an agreement at a meeting in Qatar, increasing the risk of further escalation of geopolitical tensions in the region.
-
Concerns about the slowdown have risen again after U.S. Treasury Secretary Scott Bescent said on Sunday there was no guarantee that the US economy would avoid a recession this year. This will further support demand for traditional safe haven assets during Tuesday's Asian session, raising gold prices to a fresh peak.
-
In terms of economic data, the US Census Bureau reported on Monday that US retail sales rose 0.2% in February, and a 1.2% decline in the previous month. Reading failed to meet expectations of 0.7% growth, consumer attention signals, and lifting bets that the Federal Reserve would resume its rate reduction cycle.
-
Fed fund futures suggest that the US Central Bank could cut 25 basis points each at its June, July and October monetary policy meetings. This allows the US dollar to attempt to recover from its lowest level since October 2024 touched on Monday, and is also seen as a tailwind for the incredible yellow metal.
-
Meanwhile, US President Donald Trump has expressed optimism that Russia and Ukraine could come to a ceasefire and ultimately a peace deal. This comes before Trump Putin Peace Meeting on Tuesday. This continues to support the cheerful market mood, along with optimism led by China's stimulus package announced over the weekend.
-
Traders are now turning their eyes to the US Economic Docket on Tuesday. It features building permits, housing initiation and industrial production data releases. However, the focus remains glued to the results of the two-day FOMC meeting on Wednesday, which will drive demand for the US dollar in the short term and provide a fresh directional drive for the Xau/USD pair.
FXSTREET calculates the price of gold in India by adapting international prices (USD/INR) to local currency and units of measurement. Prices are updated daily based on market rates made at the time of publication. Prices are for reference only, and local rates may diverge slightly.
Gold FAQ
Gold has played an important role in human history as it is widely used as a medium of value and exchange. Apart from the gem's brilliance and usage, precious metals are now widely viewed as safe haven assets. In other words, it is considered a good investment in times of turbulence. Gold is also widely viewed as a hedge against inflation and depreciation currencies, as it is not dependent on a particular issuer or government.
The central bank is the largest holder of money. With the aim of supporting currency in turbulent times, central banks tend to buy gold to diversify reserves and improve the perceived strength of the economy and currency. High gold reserves provide a source of trust in the country's solvency. The central bank added 1,136 tonnes of gold to its bookings in 2022, worth around $70 billion, according to data from the World Gold Council. This is the best purchase every year since the record began. Central banks in emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold is inversely correlated with the US dollar and the US Treasury, both major reserve assets and safe haven assets. As the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify their assets during turbulence. Gold is also inversely correlated with risk assets. While rallies in the stock market tend to weaken gold prices, selling in high-risk markets tends to favor valuable metals.
A wide range of factors allow prices to move. The fear of geopolitical instability or deep recession can quickly escalate gold prices due to their safe conditions. As an asset that does not yield, gold tends to rise at lower interest rates, but the cost of higher money usually weighs the yellow metal. Still, most movements depend on how the US dollar (USD) behaves, as the asset's price is in dollars (Xau/USD). Strong dollars tend to keep the price of gold down, while weaker dollars can push the price of gold up.
(An automation tool was used to create this post.)
