Gold prices rose in India on Monday, according to data collected by FXSTERET.
The price of gold stood at 9,010.69 Indian rupees (INR) per gram, an increase compared to 8,998.38 INR that cost Friday.
The price of gold increased to 105,098.90 INR per tola from 104,955.30 INR on Friday tola.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,010.69 |
| 10 grams | 90.107.03 |
| Tola | 105,098.90 |
| Troy ounce | 280,269.10 |
What moves the market today: the price of gold gains impulse to the increase in optimism on a fed rate cut
“The deceleration in the geopolitics has offered an opportunity for investors to begin to take profits due to the future perspectives of some kind of kinetic war with China and the developments in the Middle East,” said Daniel Pavilonis, senior market strategist in Rjo Futures.
The main advisors of the US President Donald Trump said Friday that the agreements with up to a dozen largest commercial partners in the United States are expected to be completed before the deadline of July 9, according to Bloomberg.
Personal expense in the US fell unexpectedly 0.1% in May, the second decrease of this year, according to the US economic analysis office on Friday. Meanwhile, personal income in the US fell 0.4% in May, the highest decrease since September 2021.
The Personal Consumer Price Index (PCE) in the US rose 2.3% year -on -year in May, compared to 2.2% in April (reviewed from 2.1%), the US Economic Analysis Office reported on Friday. This reading was in line with market expectations.
The underlying PCE price index, which excludes volatile food and energy prices, rose 2.7% in May, after the 2.6% increase (reviewed from 2.5%) observed in April. In monthly terms, the PCE price index and the underlying PCE price index increased 0.1% and 0.2%, respectively.
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.
