Gold prices experienced an uptick on Wednesday, as noted by FXStreet.
Currently, the price of gold stands at INR 9,179.94 per gram, which is up from INR 9,132.11 the previous day.
Additionally, the value rose from 106,515.10 to 107,073.10 per TOLA since yesterday.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,179.94 |
| 10 grams | 91,798.06 |
| TOLA | 107,073.10 |
| Troy ounce | 285,534.30 |
Daily Digest Market Mover: Gold Prices Rise Amid Positive Update on Trump’s Tariffs
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On Tuesday, a federal appeals court issued a favorable update for US President Donald Trump, ruling that his tariffs labeled as a “liberation date” could temporarily stay in place. This follows a previous ruling last month indicating that the methods used to enforce these tariffs were illegal.
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This development comes as the US and China have reached a consensus in Geneva, establishing a framework for addressing trade tensions after two days of discussions in London. US Secretary of Commerce Howard Lutnick mentioned that this agreement aims to tackle the bilateral issues involving rare earths and magnets.
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Meanwhile, Russia continues its military actions in the northeastern Ukrainian city of Kharkiv, having declined an unconditional ceasefire earlier this month. On the other hand, Israel is maintaining its military campaign in the Gaza Strip, contributing to ongoing geopolitical uncertainties that might help sustain gold prices.
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Recent data from the US non-farm payroll report, released last Friday, suggests that the labor market remains robust, which could lead investors to reconsider expectations for immediate rate cuts by the Federal Reserve. Still, the market is pricing in two potential rate cuts before the year ends.
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That said, the US dollar is trading within a familiar range, above its lowest level since April 22. Investors are keeping an eye out for more insights regarding the Fed’s plans for rate adjustments. The upcoming US Consumer Price Index (CPI) report is anticipated to be particularly significant.
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This will be followed by the US Producer Price Index (PPI) on Thursday, which is expected to influence short-term dollar valuations significantly, providing a driving force for gold prices. Overall, the underlying support for gold seems to be a tailwind for XAU/USD.
FXSTREET calculates gold prices in India by adapting international rates (USD/INR) to local currency and units. Prices are updated daily based on market conditions at the time of reporting and are meant for reference; local rates may vary slightly.
Gold FAQ
Gold has historically been significant in human culture, serving as a medium of value and trade. Beyond its allure and various uses, precious metals are generally regarded as safe-haven assets, particularly during turbulent times. Thus, gold is often seen as a hedge against inflation and currency depreciation since it’s not tied to any one issuer or government.
Central banks are the largest holders of currency. In times of instability, they are inclined to purchase gold to diversify their reserves and bolster confidence in the economy and currency. The amount of gold reserves can serve as a reliable indicator of a country’s creditworthiness. In 2022, central banks added 1,136 tonnes of gold to their reserves, worth approximately $70 billion, marking the highest annual purchase since records began. Countries like China, India, and Turkey are rapidly increasing their gold holdings.
Gold often moves inversely to the US dollar and US Treasury securities, which are both considered major reserve and safe-haven assets. Generally, when the dollar weakens, gold prices tend to rise, allowing both investors and central banks to diversify their portfolios. Conversely, gold prices may dip when the stock market rallies.
Various factors influence gold prices. Fears regarding geopolitical instability or a deep recession can cause prices to spike due to gold’s safe-haven status. Being an asset that doesn’t yield any interest, gold often appreciates when interest rates are low, while higher rates tend to exert downward pressure. Most price movements, however, depend heavily on the strength of the US dollar, given that gold is priced in dollars. Strong dollar values generally keep gold prices subdued, whereas a weaker dollar can lead to rises in gold pricing.
