Gold prices rose in India on Friday, according to data collected by FXSTERET.
The price of gold stood at 9,179.10 Indian rupees (INR) per gram, an increase compared to 9,139.19 inr that cost Thursday.
The price of gold increased to 107,063.80 INR per tola from 106,597.70 INR per tola from the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,179.10 |
| 10 grams | 91.792.59 |
| Tola | 107,063.80 |
| Troy ounce | 285,505.00 |
What moves the market today: Gold Daily Market: Can Thursday’s information influence the Fed and move gold?
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The ADP employment change report published Wednesday showed that the employment situation in the private sector has continued to weaken. Analysts expected 95,000 jobs to be added in June. Instead, real figures revealed 33,000 lost jobs.
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President Trump continues to press the president of the FED, Jerome Powell, to reduce interest rates. On Wednesday, he asked Powell’s “immediate resignation” in a social truth publication.
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With the independence of the Fed under question, gold could continue to find support in political uncertainty in the US, which has been weakening the demand of the dollar.
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Speaking at the European Central Bank forum (ECB) on Tuesday, Powell declared that “it will depend on the data, and we are meeting a meeting by meeting. I would not rule out any meeting or put it directly on the table. It will depend on how the data evolves.” When asked about interest rates, he said: “In fact, we stopped when we saw the size of tariffs, and essentially all inflation forecasts for the United States increased materially as a result of tariffs. We did not react in excess; in fact, we do not react at all. We are simply taking time.”
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.
