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

Unit measure	Gold Price in INR
1 Gram	11,526.15
10 Grams	115,261.00
Tola	134,438.20
Troy Ounce	358,498.20

Daily Digest Market Movers: Gold bulls take profits as geopolitical tensions ease

US President Donald Trump said Wednesday that Israel and Hamas had agreed on the first phase of his 20-point Gaza peace plan after talks in Egypt. The development prompts bullish traders to take some profits off the table and weighs on the safe-haven Gold during the Asian session on Thursday.

Minutes from the Federal Reserve’s September meeting released on Wednesday indicated near unanimity among participants to lower interest rates amid concern about labour market risks. Policymakers, however, remained split on whether there should be one or two more rate reductions before the year-end.

According to the CME FedWatch tool, the possibility of a 25-basis-point interest rate cut by the Fed in October and December stands at around 93% and 79%, respectively. Moreover, the US government shutdown enters its ninth day, which keeps a lid on the US Dollar and acts as a tailwind for the commodity.

The Senate, once again, failed to advance funding bills to end the government shutdown for the sixth time on Wednesday amid few signs of progress towards a deal as Democrats and Republicans traded blame for the impasse. Moreover, furloughing of federal workers presents risks for the US labor market.

A senior Russian lawmaker warned on Wednesday that Moscow will shoot down Tomahawk cruise missiles and bomb their launch sites if the United States decides to supply them to Ukraine. This keeps geopolitical risks in play and should contribute to limiting the corrective slide for the precious metal.

In the absence of any relevant market-moving economic releases on the back of the US government closure, traders will closely scrutinize Fed Chair Jerome Powell's remarks for cues about the rate-cut path. This will play a key role in influencing the USD and providing a fresh impetus to the XAU/USD pair.

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.)