Gold prices fell in India on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 9,095.09 Indian rupees (INR) per gram, a decrease compared to 9,112.17 INR that cost Tuesday.
The price of gold decreased to 106,083.70 INR per tola from 106,282.60 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,095.09 |
| 10 grams | 90,950.12 |
| Tola | 106,083.70 |
| Troy ounce | 282,889.10 |
What moves the market today: the price of gold is pressed for the reduction of the expectations of feat cuts of the Fed
The president of the USA, Donald Trump, disturbed investors earlier this week by announcing higher tariff rates against a series of important economies as of August 1. In addition, Trump promised to climb his commercial wars on Tuesday, threatening tariffs of up to 200% about foreign medicines and 50% on copper.
Investors now seem convinced that US tariffs will eventually translate into higher prices and allow the Federal Reserve to keep their focus on waiting and see. In addition, the optimistic US Employment Report for June relieved concerns about a deceleration of the US economy, and a Fed fees cut in July is completely out of the table.
This, in turn, pushed the performance of the American public debt of reference to ten years and the US dollar to a maximum of two weeks, making the price of gold, which does not yield, is less attractive. However, USD bulls seem reluctant and choose to wait for more clues on the Fed fees clippings before opening new positions.
Meanwhile, investors are still valuing the possibility of rate cuts of 50 basic points by the Fed by the end of this year, starting in October. Therefore, the minutes of the last meeting of the FOMC and the speeches of several Fed officials this week will be sought to obtain more information about the policy perspective of the Central Bank.
Meanwhile, Trump’s rapid changing posture about commercial policies and concerns that high American tariffs would negatively impact the global economy keep investors in tension. This could stop the operators of opening aggressive bassists around the Xau/USD torque of secure refuge and limit deepest losses.
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.
GOLD – FREQUENT QUESTIONS
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.
