Gold prices fell in India on Friday, according to data collected by FXSTERET.
The price of gold stood at 8,409.45 Indian rupees (INR) per gram, a decrease compared to 8,447.88 INR that cost Thursday.
The price of gold decreased to 98,085.98 INR per tola from 98,534.41 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,409.45 |
| 10 grams | 84,093.86 |
| Tola | 98,085.98 |
| Troy ounce | 261.563.30 |
What moves the market today: the price of gold is pressed by the modest strength of the USD; The downward potential seems limited
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The US dollar attracts some buyers for the third consecutive day and seeks to take advantage of this week’s rebound from a minimum of several months, exercising some downward pressure on the price of gold during the Asian session on Friday.
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Investors are still concerned about reciprocal rates threatened by US President Donald Trump, who said they will enter into force on April 2. This adds to a 25% tariff on steel and aluminum that has been in force since February.
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Both Russia and Ukraine intensified air attacks on Thursday in the midst of truce conversations, with Ukraine attacking the Engels of Russia Air Base in the Saratov region with attack drones, causing a fire and explosions in the area.
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In addition, the Ukraine Air Force said Thursday that Russia had launched 171 drones about its territory. Meanwhile, Russian and American officials have scheduled conversations about Ukraine in Saudi Arabia on Monday.
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Israel resumed heavy attacks in Gaza on Tuesday, breaking the high fire with Hamas that was in force since the end of January. In addition, Hamas shot three rockets towards Israel on Thursday, without causing victims.
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The Federal Reserve indicated that it would deliver two rate cuts of 25 basic points by the end of this year and also reviewed its growth perspective in the midst of uncertainty about the impact of Trump’s aggressive commercial policies.
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Adding to this, the president of the FED, Jerome Powell, said that tariffs will probably decelerate economic growth. Investors now see the US Central Bank reducing the costs of loans at the monetary policy meetings of June, July and October.
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The perspectives of a greater relief of politics by the Fed could stop the USD’s bulls to perform aggressive bets and act as a tail wind for the yellow metal that does not yield in the absence of any relevant macroeconomic publication of the US.
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.
