Gold prices fell in India on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 9,043.76 Indian rupees (INR) per gram, a decrease compared to 9,079.31 INR that cost Tuesday.
The price of gold decreased to 105,483.70 INR per tola from 105,899.30 INR per tola from the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,043.76 |
| 10 grams | 90,436.80 |
| Tola | 105,483.70 |
| Troy ounce | 281,289.70 |
What moves the market today: the price of gold is pressed for a combination of factors; The downward potential seems limited
President Donald Trump signed an order on Tuesday to relieve the effects of tariffs on the automotive industry, giving car manufacturers two years to increase the proportion of national pieces in assembled vehicles in the US in the US.
The US dollar attracts some buyers for the second consecutive day and also acts as a wind against the price of gold. However, investors remain on alert, since Trump’s erratic commercial policies continue to feed concerns about a strong economic slowdown. In addition, the expectations that the Federal Reserve soon resume its cycle of rate cuts should limit any significant increase in the USD.
The moderate expectations of the Fed were reaffirmed by the disappointing employment offers data and the US Labor Rotation Survey (Jolts) and the consumer’s confidence index of the US Board Conference of the US Board published on Tuesday. In fact, the US Labor Statistics Office (BLS) reported that employment offers in the US fell to 7.19 million on the last day of March from 7,480 million in the previous month.
Adding to this, the US Consumer Trust Index collapsed to 86.0 in April, or a minimum of almost five years. In addition, the current situation index and the expectations index fell to 133.5 and 54.4, respectively, during the month reported. The data reinforces the case for a more aggressive policy relief by the Fed and should support the yellow metal that does not yield.
In the geopolitical front, Russia dismissed Ukraine’s proposal to extend the high unilateral fire of Russian President Vladimir Putin at 30 days. In addition, USA threatened to stop her efforts to end the conflict between Russia and Ukraine if both parties did not present concrete proposals. This contributes even more to limit the fall of the XAU/USD torque.
The operators now look towards the US economic agenda on Wednesday, which includes the ADP report on employment in the private sector, the impression of the GDP of the first quarter and the Personal Consumption Expenditure Price Index (PCE). This, together with the US non -agricultural payroll report on Friday, should provide clues about the Fed policy perspective and influence the short -term raw material.
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.
