India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 11,471.27 Indian Rupees (INR) per gram, up compared with the INR 11,372.40 it cost on Tuesday.
The price for Gold increased to INR 133,799.00 per tola from INR 132,645.40 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 11,471.27 |
| 10 Grams | 114,713.00 |
| Tola | 133,799.00 |
| Troy Ounce | 356,800.30 |
Daily digest market movers: Gold edges up as US yields tumble
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Bullion prices rise in tandem with the US Dollar as the DXY, which tracks the buck’s value against a basket of six currencies, gains 0.46% to 98.57.
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US Treasury yields retreat as the 10-year Treasury note is down three basis points at 4.125%. US real yields — which correlate inversely to Gold prices —, are also down nearly three-and-a-half bps at 1.785%.
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The Minneapolis Fed's Kashkari revealed that data is showing some stagflation signals and that he is bullish on labor. He’s not convinced that a few rate cuts will translate to lower mortgage rates, but if they do drastically, he would expect the economy would a burst of high inflation.
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The New York Fed SCE showed that the median inflation expectations for one year increased from 3.2% to 3.4% and for a five-year period from 2.9% to 3%. For a three-year horizon, it remained steady at 3%.
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The same survey revealed that earnings growth expectations fell by 0.1% to 2.4%.
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Money markets indicate that the Fed will cut interest rates by 25 basis points (bps) at the upcoming October 29 meeting. The odds stand at 94%, according to the Prime Market Terminal interest rate probability tool.
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)