Gold prices rose in India on Monday, according to data collected by FXSTERET.
The price of gold stood at 8,824.17 Indian rupees (INR) per gram, an increase compared to 8,784.65 INR that cost Friday.
The price of gold increased to 102,923.40 INR per tola from 102,462.40 INR per Friday tola.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,824.17 |
| 10 grams | 88,241.72 |
| Tola | 102,923.40 |
| Troy ounce | 274,462.60 |
What moves the market today: the price of gold attracts some safe refuge flows in the midst of growing geopolitical tensions
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In an interview broadcast on Sunday, Russian President Vladimir Putin declared that Russia has the means and strength to bring the conflict in Ukraine to a logical conclusion. This occurs before the high three -day fire declared unilaterally by Putin from May 8 to 10. However, Russia had dismissed the proposals of Ukraine and the US for a high unconditional fire of 30 days.
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Israeli Prime Minister Benjamin Netanyahu promised to respond to the ballistic missile attack of the Yemen’s rebels who hit the Ben Gurion International Airport on Sunday and added that Iran would also face consequences for the attack. In response, Iran’s Minister of Defense, Aziz Nasirzadeh, said Tehran would counterattack if the US or Israel attacked.
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The president of the USA, Donald Trump, announced on Sunday a 100% tariff over all films produced in foreign countries. Its unpredictable commercial posture concerns investors, promoting refuge flows sure they help gold to extend their rebound since the minimum of last week near the round figure of $ 3,200.
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The operators reduced the bets that the Federal Reserve will cut the rates as soon as in June after the publication of US labor data better than expected on Friday, which showed that the economy added 177,000 jobs in April compared to the 130,000 expected. Additional details revealed that the unemployment rate remained stable at 4.2%, indicating an still resistant US labor market.
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However, the US dollar struggles to attract significant buyers and remains depressed below a maximum of several weeks reached last Thursday in a greater economic uncertainty due to Trump’s tariffs. This provides additional support to the XAU/USD couple before the expected two -day FOMC policy meeting that begins on Tuesday.
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In addition, the speeches of influential officials of the FED at the end of this week will be examined in search of information about the future career of monetary policy and to boost the demand of the USD. Meanwhile, the US ISM Services PMI on Monday, which, together with the developments related to trade and geopolitical holders, could produce some impulse to the Xau/USD couple on Monday.
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.
