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

Unit measure	Gold Price in INR
1 Gram	10,972.03
10 Grams	109,720.80
Tola	127,977.00
Troy Ounce	341,266.80

Daily Digest Market Movers: Gold is undermined by receding safe-haven demand and modest USD strength

The US Dollar staged a goodish recovery from a one-week low touched on Thursday and triggered an intraday turnaround in the Gold price from the vicinity of the $3,900 mark, or a fresh all-time peak. The precious metal, however, rebounded from the $3,820 area, though it lacks follow-through and ticks lower for the second straight day on Friday.
US Treasury Secretary Scott Bessent warned on Wednesday that the government shutdown could hurt the economy more than those in the past, with potential hits to the GDP, growth, and the labor market. Traders, however, brushed aside worries amid expectations of a limited impact of a partial government shutdown on the economic performance.
The optimism led to another session of record highs on Wall Street, and the spillover effect remains supportive of a generally positive tone around the Asian equity markets. This turns out to be another factor undermining demand for the safe-haven Gold during the Asian session, though any meaningful corrective fall still seems elusive.
Traders ramped up their bets that the US Federal Reserve will lower borrowing costs two more times this year, in October and December, following Wednesday's disappointing release of the ADP report on private-sector employment. This could act as a headwind for the Greenback and continue to act as a tailwind for the non-yielding yellow metal.
Meanwhile, the US reportedly will provide Ukraine with intelligence to support long-range missile strikes on Russian energy infrastructure. Trump approved the move, and US officials are urging NATO allies to do the same. This keeps geopolitical risks in play and should help limit any further corrective fall for the safe-haven precious metal.
Important US macro data scheduled at the beginning of a new month, including the Nonfarm Payrolls (NFP) report, could be delayed due to the US government shutdown. Nevertheless, speeches from influential FOMC members could drive the USD demand and provide short-term impetus to the XAU/USD pair heading into the weekend.

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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