Gold prices rose in India on Thursday, according to data collected by FXSTERET.
The price of gold stood at 9,388.38 Indian rupees (INR) per gram, an increase compared to 9,376.56 INR that cost Wednesday.
The price of gold increased to 109,504.20 INR per Tola from 109,366.40 INR per tola from the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,388.38 |
| 10 grams | 93,883.78 |
| Tola | 109,504.20 |
| Troy ounce | 292,011.40 |
What moves the market today: the price of gold struggles to attract buyers in the midst of mixed fundamental signals
The president of the USA, Donald Trump, held a meeting in the situation room on Wednesday afternoon to discuss options in the Israel-Iran conflict. Media reports suggest that Trump has approved attack plans, although he wants to make sure that such an attack is really necessary and does not drag the US to a prolonged war in the Middle East.
As the Israel-Iran conflict enters its seventh day, Israel’s Defense Forces (IDF) warned the residents of the cities of Arak and Khondab in the center of Iran that evacue them for their safety, since they are operating in the area against Iranian military infrastructure. This increases the risk of a total war in the Middle East and weighs on the feeling of investors.
Meanwhile, Trump said earlier this week that tariffs in the pharmaceutical sector will arrive soon. This adds a layer of uncertainty in the markets before the deadline of July 9 for higher US reciprocal tariffs and provides some support for the price of safe refuge gold, although a certain buyer interest in the US dollar keeps any significant appreciation at bay.
The Federal Reserve, as expected widely, maintained stable interest rates amid the concern that Trump administration tariffs could increase consumer prices. In the so -called points graph, the Committee projected two feat cuts by the end of 2025, although those responsible for the policy predicted only a 25 basic points cut in each of 2026 and 2027.
In addition, seven of the 19 responsible for the policy indicated that they did not want cuts this year, compared to four in March, amid the risk that inflation could remain persistently high and close the year by 3%. This, in turn, helps the USD consolidate the recovery of this week from a minimum of three years and limits the bullish potential for yellow metal without performance.
The US Banks will be closed on Thursday in observance of the National Independence Day of Juneteenth, which suggests a relatively low liquidity and irregular volatility. In addition, there are no relevant macroeconomic data from the US programmed for publication, leaving the Xau/USD torque at the mercy of USD price dynamics and the feeling of market risk in general.
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.
