India Gold price today: Gold falls, according to MCX data
Gold prices fell in India on Wednesday, according to data from India's Multi Commodity Exchange (MCX).
Gold price stood at 62,220 Indian Rupees (INR) per 10 grams, down INR 104 compared with the INR 62,324 it cost on Tuesday.
As for futures contracts, Gold prices increased to INR 62,141 per 10 gms from INR 62,124 per 10 gms.
Prices for Silver futures contracts decreased to INR 71,502 per kg from INR 71,090 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,425 |
| Mumbai | 64,225 |
| New Delhi | 64,240 |
| Chennai | 64,370 |
| Kolkata | 64,340 |
Global Market Movers: Gold Comex price draws support from a combination of factors
Retreating US Treasury bond yields keep the US Dollar (USD) bulls on the defensive and turn out to be a key factor lending some support to the Comex Gold price amid geopolitical tensions in the Middle East.
US military forces struck 3 facilities used by Iranian-affiliated militant groups in western Iraq in direct response to a series of escalatory attacks, raising the risk of a further escalation of tensions in the Middle East.
The incoming US macro data suggested that the economy is in good shape and gives the Federal Reserve more headroom to keep interest rates higher for longer, which should cap the non-yielding bullion.
The current market pricing indicates a greater chance of the first interest rate cut by the Fed in May, which was initially expected in March, and less aggressive policy easing than is now anticipated by investors.
The lack of strong follow-through buying warrants caution for bulls ahead of this week's key macro releases – the flash global PMIs, the Advance US Q4 GDP print and the US Core PCE Price Index.
The crucial US inflation data will influence expectations about the Fed's future policy actions, which, in turn, will drive the USD demand and determine the near-term trajectory for the XAU/USD.
(An automation tool was used in creating this post.)
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.