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

Unit measure	Gold Price in INR
1 Gram	9,359.91
10 Grams	93,602.31
Tola	109,172.20
Troy Ounce	291,124.70

Daily Digest Market Movers: Gold price remains depressed amid diminishing odds for a jumbo Fed rate cut

Traders pared their bets for a more aggressive policy easing by the US Federal Reserve following last week's release of the hot US Producer Price Index (PPI), which pointed to signs of a gain of momentum in inflationary pressures. Moreover, Kansas City Fed president Jeffrey Schmid said on Thursday, described the central bank's current monetary policy stance as "modestly restrictive" and sounded cautious about a September rate cut.

Separately, Cleveland Fed President Beth Hammack said that it is important to maintain a modestly restrictive policy to lower inflation. The biggest concern is that inflation is too high and has been trending in the wrong direction, Hammack added further. This assists the US Dollar in preserving its weekly gains to the highest level since August 6 and exerts some downward pressure on the non-yielding Gold for the second straight day on Friday.

Meanwhile, Chicago Fed President Austan Goolsbee said in a Bloomberg TV interview that the recent inflation data gives him some pause when it comes to cutting interest rates. Goolsbee, however, indicated that the September policy meeting is live for potential monetary policy action. Furthermore, Boston President Susan Collins signaled openness to a rate cut as soon as next month due to risks of weaker employment and higher tariffs.

According to the CME Group's FedWatch Tool, traders are pricing in a 75% chance that the Fed will lower borrowing costs in September and expect at least two 25 basis points rate cuts by the year-end. The bets were reaffirmed by Thursday's data, which showed that Jobless Claims rose by the most in about three months, and people collecting unemployment relief in the prior week climbed to the highest level in nearly four years.

Hence, investors will closely scrutinize Fed Chair Jerome Powell's speech at the Jackson Hole Symposium for fresh cues about the rate-cut path. This, in turn, will play a key role in influencing the near-term USD price dynamics and determining the next leg of a directional move for the non-yielding yellow metal.

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.)