Gold prices fell in India on Thursday, according to data collected by FXSTERET.
The price of gold stood at 9,297.71 Indian rupees (INR) per gram, below 9,313.37 INR that cost Wednesday.
The price of gold decreased to 108,443.00 INR per tola from 108,629.30 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,297.71 |
| 10 grams | 92,974.23 |
| Tola | 108,443.00 |
| Troy ounce | 289,191.40 |
Daily Gold Market Movements: Xau/Usd Tires while the yields of the US Treasury Bond
The price of gold shoots while the US dollar sinks. The US dollar index (DXY), which follows the value of the dollar against a basket of six currencies, fell 0.44% to 98.81.
The yields of the US Treasury bonds are falling. The 10 -year treasure yield collapses 7.5 basic points to 4,383%. The real US yields have followed the same trend and have also dropped the same amount to 2,063%, a tail wind for precious metals prices.
The numbers of the national employment change of ADP for May increased by 37,000, below the estimates of 110,000 and the 60,000 reviewed figure of the previous month.
The ISM services PMI fell from 51.6 in April to 49.9 in May, below the forecast of 52.0.
Monetary markets suggest that operators are discounting 54 basic flexibility points towards the end of the year, according to Prime Market Terminal data.
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.
