On Monday, gold prices in India saw an increase, as per data from FXStreet.
The price for gold rose to INR 11,573.69 per gram, up from INR 11,463.25 on Friday.
Similarly, the price per tola went from Rs 133,705.10 to Rs 134,993.60.
| Unit Measurement | Gold Price in INR |
|---|---|
| 1 gram | 11,573.69 |
| 10 grams | 115,739.70 |
| tola | 134,993.60 |
| troy ounce | 359,992.90 |
Daily Digest Market Mover: Gold Bulls Maintain Control Amid Flight to Safety, Fed Rate Cut Expected
Global risk sentiment declined on Friday after US President Trump threatened to impose significant tariffs on Chinese exports and announced new restrictions on critical software set to take effect on November 1. In response, China accused the US of hypocrisy regarding tariff threats and hinted at possible countermeasures if the US goes ahead, asserting that they are not afraid of a trade war.
Over the weekend, however, Trump eased his rhetoric, stating on Truth Social that the US doesn’t wish to harm China. He emphasized that both countries aim to avoid economic challenges. Still, the ongoing tensions have fostered uncertainty about a potential meeting between Trump and Chinese President Xi Jinping later this year, indirectly contributing to a surge in gold prices during Monday’s Asian sessions.
As the US government shutdown looks set to enter a third week, Congress remains at an impasse over funding. The Senate isn’t scheduled to vote until Tuesday afternoon, and key House leaders have indicated little interest in collaborating with the other party. Trump has placed blame on Democrats for the layoffs of thousands of federal workers who received termination notices on Friday.
On Air Force One, Trump cautioned that if Russia doesn’t resolve the war swiftly, it could result in long-range Tomahawk missiles being used by Ukraine. He warned that such an introduction would escalate aggression. Russia has warned Ukraine against accepting these missiles, contributing to geopolitical risks and increasing demand for safe-haven assets like gold.
According to the CME FedWatch tool, the likelihood of the Fed implementing a 25 basis point cut in October and December stands at about 96% and 87%, respectively. This might facilitate further gains for gold as demand for US dollar purchases wanes amid relatively low activity due to the US bank holiday.
Gold prices in India are calculated by adjusting the international prices (USD/INR) to local currency and units. These are updated daily based on market rates at the time. Prices are for reference only, and local variations may occur.
Gold FAQ
Gold has historically been significant, serving as both a store of value and a medium of exchange. Besides its appeal in jewelry, it’s often seen as a safe investment in uncertain times. Many also consider it a hedge against inflation and currency depreciation, since it’s not tied to any specific issuer or government.
Central banks are major gold holders, aiming to bolster their currencies during financial unrest. By increasing their gold reserves, they seek to diversify foreign exchange holdings and enhance confidence in their economic stability. According to the World Gold Council, central banks added 1,136 tonnes of gold worth around $70 billion in 2022, marking the highest annual total on record. Emerging nations like China, India, and Türkiye are ramping up their gold stocks.
Gold tends to have an inverse relationship with the US dollar and US Treasuries. Generally, when the dollar weakens, gold prices increase, allowing for asset diversification. It also tends to react oppositely to risk assets; rising stock markets typically dent gold prices, while declines in those markets are favorable for gold.
Gold prices can fluctuate based on various factors. Geopolitical instability and recession fears may drive gold’s price up as it is considered a safe haven. Although gold tends to rise when interest rates drop, increasing costs can burden its price. Still, the primary influence remains the US dollar’s performance, as gold is priced in dollars. A strong dollar can suppress gold prices, while a weaker dollar might drive them higher.
(An automated tool was used to create this post.)
