India Gold price today: Gold falls, according to FXStreet data

Unit measure	Gold Price in INR
1 Gram	10,148.72
10 Grams	101,488.20
Tola	118,373.80
Troy Ounce	315,658.90

Daily Digest Market Movers: Gold bulls pause for a breather amid modest USD uptick, receding safe-haven demand

The US Nonfarm Payrolls report released on Friday showed that the economy added just 22,000 jobs in August, missing market expectations by a big margin. Moreover, revisions to earlier prints revealed the economy lost 13K jobs in June, marking the first monthly decline since December 2020 and pointing to deteriorating US labor market conditions.

Additional details revealed that the US Unemployment Rate edged higher to 4.3% from 4.2% in July, as anticipated, while the Labor Force Participation Rate ticked up to 62.3% from 62.2%. Finally, annual wage inflation, as measured by the change in the Average Hourly Earnings, declined to the 3.7% YoY rate in August from 3.9% in the previous month.

Traders were quick to react and are now pricing in a small possibility of a jumbo rate cut by the Federal Reserve in September. Moreover, market participants see a greater chance that the US central bank might lower borrowing costs three times by the end of this year, which, in turn, pushed the Gold price to the $3,600 mark, or a fresh all-time high on Friday.

The US Dollar kicks off the new week on a positive note and recovers a part of the post-NFP slump to over a one-month low. Adding to this, the upbeat market mood acts as a headwind for he safe-haven precious metal at the start of a new week. Traders now look to the release of the latest US inflation figures due later this week for a fresh impetus.

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

Why do people invest in Gold?

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.

Who buys the most Gold?

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.

How is Gold correlated with other assets?

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.

What does the price of Gold depend on?

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.)

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