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

Unit measure	Gold Price in INR
1 Gram	10,336.95
10 Grams	103,369.30
Tola	120,568.00
Troy Ounce	321,515.20

Daily Digest Market Movers: Gold continues to be backed by Fed rate cut bets, safe-haven flows

Soft US labor data released on Friday reaffirmed bets that the Federal Reserve will cut interest rates next week and lifts the non-yielding Gold price to a fresh record high for the third consecutive day on Tuesday. In fact, traders are now pricing in a small possibility of a jumbo rate cut at the September 16-17 FOMC meeting and expect the Fed to lower borrowing costs three times by the end of this year.

Meanwhile, US President Donald Trump has shown his discontent towards Fed Chair Jerome Powell for being too late to act on borrowing costs. Moreover, Trump's calls to dismiss Fed governors fueled concerns about the central bank's independence. This keeps the US Dollar depressed near its lowest level since July 28, which is seen as another factor that contributes to the XAU/USD pair's uptrend.

France's Prime Minister Francois Bayrou lost a vote of confidence in the National Assembly, resulting in his resignation. This comes on top of Japanese Prime Minister Shigeru Ishiba's announcement over the weekend that he will step down as President of the ruling Liberal Democratic Party (LDP). Apart from this, persistent geopolitical tensions further seem to underpin the safe-haven precious metal.

In fact, Trump said that he was prepared to apply new sanctions on Russia, following the latter's largest-ever rocket and drone attack on Ukraine over the weekend. Ukrainian President Volodymyr Zelenskyy reacted to the attack by saying that he is counting on a strong US response. This keeps geopolitical risks in play and backs the case for a further near-term appreciating move for the commodity.

The market focus now shifts to the release of the latest US inflation figures, which will play a key role in influencing the USD price dynamics during the latter part of the week and provide some meaningful impetus to the bullion. The fundamental backdrop, meanwhile, suggests that the path of least resistance for the XAU/USD pair is to the upside, though overbought conditions warrant some caution.

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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