Gold prices in India stayed consistent on Tuesday, as per data from FXStreet.
The price per gram was noted at INR 9,252.07, showing little change from INR 9,259.83 the previous day.
When looking at the TOLA rate, gold was remarkably stable, hovering between 108,004.90 INR and 107,913.00 INR just a day prior.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,252.07 |
| 10 grams | 92,517.94 |
| Tola | 107,913.00 |
| Troy ounce | 287,772.10 |
Daily Digest Market Mover: Backfoot Gold Prices on Expectations for Fed Hold
Recent economic data from the US, primarily concerning employment, reaffirmed the Federal Reserve’s intention to keep the fund rate steady. This follows inflation metrics that haven’t shifted back toward the Central Bank’s 2% target.
A poll by Reuters indicated that traders foresee gold prices averaging $3,320 in 2025 and $3,400 in 2026.
The CME FedWatch tool suggests there’s a 63% chance that the Fed will cut the rate by 25 basis points during the September 17 meeting.
Current expectations hint that the Fed will maintain its rates, with a 96% likelihood of keeping them unchanged at the July 30 gathering, while only 4% likelihood points to a potential cut.
FXSTREET tailors gold prices in India by adapting international figures (USD/INR) to local standards. These prices are refreshed daily alongside market fluctuations, serving primarily as a reference. It’s worth noting that local rates might vary slightly.
Gold FAQ
Gold has significant historical importance, widely regarded as a medium of value. Beyond its beauty and utility, it’s also seen as a safe-haven asset. People often turn to gold during turmoil, believing it serves as a hedge against inflation and currency depreciation since it doesn’t rely on any single government or issuer.
Central banks are the biggest holders of currency. They often invest in gold to stabilize their reserves and bolster the economy and currency’s perceived strength in uncertain times. In 2022, central banks added about 1,136 tonnes of gold, valued at roughly $70 billion, marking the largest year of purchases on record. Countries like China, India, and Türkiye are quickly ramping up their gold reserves.
There’s a strong inverse relationship between gold and the US dollar, the latter being a major reserve and safe-haven asset. Typically, as the dollar weakens, gold prices tend to increase, making it appealing for both investors and central banks, particularly in chaotic market conditions. Conversely, rises in the stock market can suppress gold prices, while downturns tend to benefit the metal.
Gold prices fluctuate due to various factors. Fears stemming from geopolitical tension or potential recession can drive prices up as people seek safe havens. Notably, since gold doesn’t generate income, it usually rises in a low-interest-rate environment. Meanwhile, high-rate settings tend to burden its price. Ultimately, gold’s price responses are heavily influenced by the strength of the US dollar, considering its price is denominated in dollars. Stronger dollars usually suppress gold prices, while weaker ones can elevate them.
