Gold prices fell in India on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 8,824.06 Indian rupees (INR) per gram, a decrease compared to 8,871.65 INR that cost Monday.
The price of gold decreased to 102,920.90 INR per tola from 103,477.20 INR per tola from the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,824.06 |
| 10 grams | 88,242.57 |
| Tola | 102,920.90 |
| Troy ounce | 274,452.00 |
What moves the market today: the bulls of the price of gold remain on the margin in the middle of the decrease in the demand for safe refuge
Moody’s reduced the sovereign credit classification of America on a step, to “AA1” on Friday, citing concerns about the growing indebtedness of the nation. However, this had a modest impact on the feeling of global risk amid the growing commercial optimism, which, in turn, did not help the price of safe refuge gold to capitalize on the modest profits of the previous day.
The operators increased their bets for additional cuts of interest rates by the Federal Reserve in 2025 after the publication of weak inflation figures and US retail sales data last week. In fact, the current market valuation indicates greater probabilities of at least two Fed cuts in 2025. This keeps the US dollar depressed near a minimum of one week reached Monday.
In a more Hawkish note, the president of the Fed of Atlanta, Raphael Bostic, said that inflation is not moving towards the target as fast as anticipated, and that inflation expectations are moving worryingly. Bostic added that the number of rates cuts this year depends on how things are developed, and the details of the tariffs will be important. Bostic leans towards a single rate cut this year.
New York Fed President John Williams said recent economic data have been very good and that the labor market is quite balanced. However, Williams warned that some prospective indicators are pointing out concern. The keyword for the economy is uncertainty, and monetary policy is in a good place, added Williams.
The Vice President of the Fed, Philip Jefferson, said that the US could face a temporary increase in the price level due to tariffs, but needs to make sure that it does not become a sustained increase in inflation. It is too early to say how commercial policies will affect the labor market, and the Fed will maintain policy in its place to ensure that inflation expectations remain anchored.
The president of the Fed of Minneapolis, Neel Kashkari, said that the uncertainty continues due to the commercial policies of the Trump administration has significantly affected the feeling of investors. Kashkari added that there will be many jobs in the future of the US economy and backed the focus of waiting and seeing the Fed until the tariff panorama stabilizes.
In the Geopolitical Front, the Israeli army issued evacuation orders to people in Khan Yunis, the city of southern Gaza, while launching a new operation to increase the pressure on Hamas to accept a high temporary fire. In addition, the Israeli prime minister, Benjamin Netanyahu, said the defense forces will take control of the entire Gaza Strip.
Meanwhile, US President Donald Trump announced on his social truth platform that Russia and Ukraine have agreed to begin negotiations towards a high fire immediately after separate telephone conversations with the leaders of both countries. Trump added that the conditions of bilateral conversations will be negotiated directly between the two parties.
There are no relevant economic data that move the market scheduled for publication in the US on Tuesday, leaving USD at the mercy of the Speeches of influential FOMC members. Apart from this, trade related developments will play a key role in promoting the feeling of broader risk and producing short -term trading opportunities around the Xau/USD.
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.
