After the corrective recoil in the gold of Comex from historical maximums, the price of gold in India also follows the same trend on Friday.
The operators resort to profits after the rebounded record backed by the tariff war of the US president, Donald Trump, preparing for the critical report of non -agricultural payroll (NFP) of the United States and the speech of the president of the FED, Jerome Powell, later in the day.
At the time of writing, the price of gold is observed in a downward trend at 8,495.89 Indian rupees (INR) per gram, after the closing of Thursday of 8,529.00 INR, according to data collected by FXSTRET.
At the same time, the price of gold decreases to 99,094.37 INR per tola from 99,480.59 INR per tola seen on Thursday.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,495.89 |
| 10 grams | 84,958.75 |
| Tola | 99,094.37 |
| Troy ounce | 264,251.80 |
Movements in global markets: The price of gold takes a break before the risks of key events in the US.
- The price of gold attracts some sellers for the second consecutive day on Friday, although a combination of factors should continue to act as a tail wind and limit any significant corrective fall from the historical maximum.
- The president of the United States, Donald Trump, shook the global financial markets late Wednesday and revealed reciprocal tariffs of at least 10% over all imported goods, which could negatively impact the world economy.
- The operators increased the expectations that the Federal Reserve resume its cycle of feat cuts in June and reduce indebted costs four times by the end of the year, since Trump’s commercial policies revive the fears of recession in the US.
- The US government bonus yield at 10 years falls below 4.0% for the first time in six months and fails to help the US dollar to capitalize on the night rebound from a minimum of several months.
- Meanwhile, the data published on Thursday showed that economic activity in the US services sector lost impulse in March, with the ISM services PMI falling to 50.8 from 53.5 in February and being below the estimates.
- Separately, the US Department of Labor (DOL) reported that US citizens who submitted new unemployment insurance requests decreased to 219K for the week that ended on March 29 from the previous 225K.
- The aforementioned fundamental background favors the bulls of the Xau/USD. Therefore, the slight fall could be attributed to a certain repositioning trade before the publication of monthly employment details in the US.
- The Non -Agricultural Payroll (NFP) report is expected to show that the US economy added 135K new jobs in March, although it is anticipated that the unemployment rate remains stable at 4.1%.
FXSTERET calculates gold prices in India adapting international prices (USD/INR) to the local currency and units of measure. Prices are updated daily according to market rates taken at the time of publication. Prices are only reference and local rates could diverge slightly.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
(An automation tool was used to create this publication.)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
