India Gold price today: Gold falls, according to FXStreet data
Gold prices fell in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 9,520.27 Indian Rupees (INR) per gram, down compared with the INR 9,537.22 it cost on Tuesday.
The price for Gold decreased to INR 111,042.50 per tola from INR 111,240.30 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,520.27 |
| 10 Grams | 95,202.66 |
| Tola | 111,042.50 |
| Troy Ounce | 296,113.60 |
Daily Digest Market Movers: Gold price bulls turn cautious amid receding safe-haven demand
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Asia equity markets mostly rose on Wednesday as investors assessed the disappointing US macro data, which fueled economic worries and pushed Wall Street lower on Tuesday. In fact, the Institute for Supply Management (ISM) reported that its Services Purchasing Managers' Index (PMI) slipped to 50.1 in July from 50.8 in the previous month.
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Additional details of the report showed that the Employment Index ticked lower to 46.4 from 47.2, and the New Orders Index deflated to 50.3 during the reported month from 51.3 in June. This comes on top of softer July US jobs data and underscores the ongoing drag on the economy amid the uncertainty over US President Donald Trump's trade policies.
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Nevertheless, traders have ramped up their bets that the Federal Reserve will lower borrowing costs at the September policy meeting and are pricing in the possibility of more than two 25-basis-point rate cuts by the end of this year. This fails to assist the US Dollar in attracting any meaningful buyers and should act as a tailwind for the non-yielding Gold price.
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On the trade-related front, Trump announced that US tariffs on semiconductor and pharmaceutical imports will be imposed within the next week or so. Moreover, the Trump administration has already imposed levies on imports of cars and auto parts as well as steel and aluminum. This keeps investors on edge and should further support the commodity.
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There isn't any relevant market-moving economic data due for release from the US on Wednesday, leaving the USD at the mercy of comments from influential FOMC members. Apart from this, the broader risk sentiment could drive the safe-haven XAU/USD and produce trading opportunities ahead of the latest US inflation figures next week.
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.)