Gold prices fell in India on Friday, according to data collected by FXSTERET.
The price of gold stood at 9,056.93 Indian rupees (INR) per gram, a decrease compared to 9,152.44 INR that cost Thursday.
The price of gold decreased to 105,638.30 INR per tola from 106,752.20 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,056.93 |
| 10 grams | 90,569.31 |
| Tola | 105,638.30 |
| Troy ounce | 281,702,30 |
What moves the market today: the bulls of the price of gold seem reluctant despite the weakest USD
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The third and final estimate of the Department of Commerce published on Thursday showed that the US economy contracted more than deemed previously at the beginning of 2025, due to a moderate consumer expense and tariff -related interruptions. In fact, the US Gross Domestic Product (GDP) fell to an annualized rate of 0.5% during the period from January to March, a more pronounced fall than 0.2% reported in the second estimate.
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A separate report published by the US Labor Department showed that the number of Americans who requested unemployment benefits for the first time fell by 10,000 to 236,000, seasonally adjusted, for the week that ended on June 21. However, continuous requests increased by 37,000 to 1,974 million for the week that ended on June 14. This marked the highest level since November 2021 and suggested a weak hiring environment.
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Data fed speculations that US unemployment rate could increase at least 4.3% in June from 4.2% in May. This could force the Federal Reserve to resume its cycle of rate cuts in July and further reduce indebted costs by the end of this year. The prospects drag the US dollar at its lowest level since March 2022 and could continue to provide some support for the price of gold that does not yield.
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Investors now expect the publication of the US Expenditure Price Index (PCE) of the United States, which will be published later this Friday, to obtain more clues on the path of fees of fees of the Fed. The consensus estimates point to a monthly increase of 0.1% in the underlying PCE price index and an annual increase of 2.6% in May. A surprisingly stronger fact would validate the waiting approach of the president of the Fed, Jerome Powell, with respect to the cuts of fees and strengthened the USD.
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In fact, Powell reiterated this week that the Fed is well positioned to wait to cut interest rates until it has a better control over the impact of elevated tariffs on consumer prices. The comments caused new criticisms of the president of the USA, Donald Trump, who has been asking for lower interest rates. In addition, the reports suggest that Trump was considering appointing Powell’s successor for September or October.
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Development feeds concerns about the possible erosion of the independence of the Fed, which should limit any immediate positive reaction of the USD to the crucial inflation data. This, in turn, suggests that the least resistance path for the Xau/USD torque is upwards and any additional fall could continue to be seen as a purchase opportunity.
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.
