Gold prices dropped on Friday, according to FXStreet’s data.
The current gold price stands at INR 9,056.93 per gram, a decrease from Thursday’s rate of INR 9,152.44.
Additionally, prices for gold decreased from 106,752.20 per TOLA to 105,638.30 just a day prior.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,056.93 |
| 10 grams | 90,569.31 |
| Tola | 105,638.30 |
| Troy ounce | 281,702.30 |
Daily Digest Market Mover: Gold Price Bulls Look Inactive Despite Weak USD
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The Commerce Department’s final estimate, published Thursday, indicated a greater contraction in the US economy than previously thought for early 2025. The decline in GDP was 0.5% annually from January to March, which is sharper than the earlier estimate of 0.2%, largely driven by subdued consumer spending and tariff issues.
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Another report from the U.S. Labor Bureau noted a drop in unemployment benefits for the week ending June 21st, which fell to 236,000, adjusted for seasonality.
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This data sparked speculation that the unemployment rate could rise to 4.3% in June from 4.2% in May. Such a change might give the Federal Reserve a reason to restart its interest rate cuts in July, potentially lowering borrowing costs even more by year-end. This scenario may push the US dollar to its lowest since March 2022, which could bolster gold prices.
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Investors are looking forward to the US Personal Consumption Expenditure (PCE) price index data expected later this week for more indicators regarding the Fed’s rate cut intentions. Current estimates suggest core PCE might have risen by 0.1% month-over-month, presenting an annual increase of 2.6% in May.
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Jerome Powell, the Fed Chair, expressed this week that he aims to hold off on rate cuts until the Fed can address the impact of tariffs on consumer prices effectively. This has led to some criticism from President Trump, who is advocating for lower interest rates. Reports also indicate that Trump may be contemplating a replacement for Powell by September or October.
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Such developments raise concerns about the Fed’s independence, which may dampen immediate positive reactions to inflation data. This sets a potential path of least resistance in the XAU/USD pair, suggesting that any dips might present buying opportunities.
FXSTREET calculates gold prices in India by adjusting international rates (USD/INR) to local currency and measurement units. Prices are updated daily based on market conditions at publication time. They are for reference, and local rates may vary slightly.
