Gold prices decreased in India on Tuesday, as detailed by FXStreet.
The price was reported at INR 9,087.40 per gram, down from INR 9,149.26 the previous day.
Additionally, the price for TOLA fell from 106,715.20 to 105,993.00 INR in just a day.
| Unit Measure | INR Gold Prices |
|---|---|
| 1 gram | 9,087.40 |
| 10 grams | 90,875.47 |
| TOLA | 105,993.00 |
| Troy ounce | 282,651.00 |
Daily Digest Market Mover: Climbing Gold as the US Falls, Impacting the Dollar
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The US 10-year financial yield is at 4.478%, which is a 3 basis point drop. Current US yields are also slightly lower, sitting at 2.168%, creating a headwind for bullion prices.
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Gold prices are rebounding following strong employment data from the US Non-Farm Payrolls report, which saw an increase of 139,000 jobs—surpassing the 130,000 forecast. Meanwhile, the unemployment rate remained steady at 4.2%. This has reinforced the Fed’s cautious approach, somewhat easing speculation about interest rate cuts this year.
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Looking ahead, Wednesday’s US CPI is anticipated to rise from 2.3% to 2.5%, with core figures expected to increase from 2.8% to 2.9%. If these projections hold true, it may limit the Fed’s ability to meet President Trump’s pressure for rate cuts.
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Recent data indicates that China’s central bank added gold to its reserves for the seventh straight month in May.
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The easing of trade tensions between the US and China might put some downward pressure on gold, which has already gained over 26% this year.
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According to Prime Market terminal data, traders are currently pricing in a 44.5 basis point easing towards the end of the year.
FXStreet calculates gold prices in India by adapting global prices (USD/INR) for local currency and measurement units. These prices are updated daily according to market rates at publication time and should serve as a reference, as local prices may vary slightly.
Gold FAQ
Gold has been significant throughout history as a medium of value and exchange. It’s not just about its beauty; precious metals are widely regarded as safe haven assets. So, in turbulent times, it tends to make a sound investment. Furthermore, gold acts as a hedge against inflation and currency depreciation since it’s not reliant on a single issuer or government.
Central banks are the largest holders of money. To support currency during difficult times, they often purchase gold to diversify their reserves and enhance the perceived strength of their economy and currency. High levels of gold reserves can instill trust in a nation’s financial health. In 2022, for example, the central bank bought 1,136 tonnes of gold, valued around $70 billion, marking the highest annual purchase since records began. Countries like China, India, and Türkiye are rapidly increasing their gold reserves.
Gold typically moves inversely to the US dollar and US Treasury yields, both of which are significant reserve and safe haven assets. Essentially, when the dollar weakens, gold prices tend to rise, allowing investors and central banks to diversify their assets during unstable periods. Conversely, while stock market gains may reduce gold prices, downturns in high-risk markets often boost gold.
Numerous factors can influence price movements. For instance, fears of geopolitical instability or economic recession can rapidly hike gold prices due to its reputation as a safe asset. As a non-yielding asset, gold usually performs better when interest rates are low; however, higher rates can exert downward pressure. Ultimately, the strongest determinant is how the US dollar behaves since gold prices are quoted in dollars. A strong dollar tends to depress gold prices, while a weaker dollar can elevate them.
