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

Unit measure	Gold Price in INR
1 Gram	11,266.84
10 Grams	112,665.80
Tola	131,412.10
Troy Ounce	350,441.00

Daily Digest Market Movers: Gold draws support from a weaker USD; bulls seem reluctant amid trade optimism

Expectations of further interest rate cuts by the US Federal Reserve keep the US Dollar depressed for the second straight day on Tuesday and assist the non-yielding Gold to stage a modest recovery from an over two-week low.

According to the CME Group's FedWatch Tool, traders have fully priced in that the US central bank will lower borrowing costs by 25-basis-points at the end of a two-day meeting on Wednesday and cut rates again in December.

The bets were reaffirmed by the latest US inflation figures released on Friday, which showed that the headline Consumer Price Index and the core gauge (excluding food and energy) increased by the 3% YoY rate in September.

US President Donald Trump, in response to Russian President Vladimir Putin's announcement of a successful test of a new nuclear-powered cruise missile, warned that the US has a nuclear submarine off the coast of Russia.

This keeps the risk of a further escalation of geopolitical tensions and turns out to be another factor lending some support to the safe-haven precious metal, though the US-China trade optimism could keep a lid on further gains.

Top officials from the US and China agreed on Sunday a framework for a potential trade deal that will be discussed when Trump and Chinese President Xi Jinping meet this week, easing concerns about a full-blown trade war.

This, in turn, remains supportive of the upbeat mood around the equity markets and might hold back traders from placing fresh bullish bets around the XAU/USD pair heading into this week's key central bank event risks.

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.)