Gold prices remained broadly unchanged in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 11,034.80 Indian Rupees (INR) per gram, broadly stable compared with the INR 11,033.19 it cost on Wednesday.
The price for Gold was broadly steady at INR 128,707.70 per tola from INR 128,688.90 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 11,034.80 |
| 10 Grams | 110,347.70 |
| Tola | 128,707.70 |
| Troy Ounce | 343,216.80 |
Daily Digest Market Movers: Gold continues to draw support from Fed rate cut bets and geopolitical risks
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Daily Digest Market Movers: Gold continues to draw support from Fed rate cut bets and geopolitical risks
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US President Donald Trump’s Republican Party failed to agree with opposition Democrats on a way forward on a spending bill. Investors, however, react little amid expectations of a limited impact on the economy due to a government shutdown. This, in turn, remains supportive of the positive risk tone and acts as a headwind for the safe-haven Gold price during the Asian session on Thursday.
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On the economic data front, Automatic Data Processing reported on Wednesday that private-sector employers shed 32K jobs in September, marking the biggest drop since March 2023. Moreover, the August payrolls number was revised down to show a loss of 3K compared to an increase of 54K reported initially. The data reinforced bets for two more rate cuts by the Federal Reserve by the year-end.
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Meanwhile, the Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) came in slightly above consensus estimates and improved from 48.7 to 49.1 in September. This assisted the US Dollar in bouncing off a one-week low touched on Wednesday. The momentum, however, runs out of steam amid dovish Fed expectations, which continue to support the non-yielding yellow metal.
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According to the Wall Street Journal (WSJ), the US will provide Ukraine with intelligence to support long-range missile strikes on Russian energy infrastructure. Trump approved the move, and US officials are urging NATO allies to do the same. This keeps geopolitical risks in play and should contribute to limiting any corrective decline in the safe-haven precious metal, warranting some caution for bears.
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Important US macro releases scheduled at the start of a new month, including the closely watched US Nonfarm Payrolls (NFP) report on Friday, are likely to be delayed on the back of a partial US government shutdown. Hence, speeches from influential FOMC members will play a key role in driving the USD demand and producing short-term trading opportunities around 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
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.
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.
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.
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.)