Gold prices fell on Thursday in India, according to data from the Indian Multi Commodity Exchange (MCX).
The price of Gold stood at 61,208 Indian Rupees (INR) per 10 grams, 100 Indian Rupees less than the 61,308 INR it cost on Wednesday.
As for futures contracts, Gold prices rose to INR 61,084 per 10 grams from INR 61,024 per 10 grams.
Prices for Silver futures contracts fell to INR 74,590 per kg from INR 72,826 per kg.
| Major cities in India | Gold Prices |
|---|---|
| Ahmedabad | 63,360 |
| Bombay | 63,190 |
| New Delhi | 63,350 |
| Chennai | 63,320 |
| Calcutta | 63,370 |
Daily Market Summary: Comex Gold Price Rebounds on Thanksgiving Day
- The emergence of fresh selling around the US Dollar helps the Comex Gold price regain positive traction on Thursday.
- The USD recovery inspired by the FOMC minutes is faltering on expectations that the Federal Reserve (Fed) will not raise rates further.
- Policymakers reiterated the stance to keep rates higher for longer and remain committed to tightening monetary policy further if progress in controlling inflation falters.
- However, the current market valuation indicates a greater than 50% probability that the US central bank will begin cutting interest rates in May 2024.
- Meanwhile, the Fed’s dovish expectations overshadow Wednesday’s better-than-expected U.S. labor market and consumer sentiment data.
- The number of Americans filing new claims for unemployment benefits fell more than expected last week, to 209,000, the lowest level in more than a month.
- The University of Michigan’s consumer sentiment survey showed that American consumers’ inflation expectations rose for the second straight month in November.
- Other US data showed that orders for long-lasting US manufactured goods fell more than expected in October, pointing to a slowdown in economic demand.
- Lighter trading volumes due to the US Thanksgiving holiday and repeated failures ahead of the $2,010 level justify caution among bullish traders.
Frequently asked questions about Gold
Why invest in Gold?
Gold has played a fundamental role in human history, as it has been widely used as a store of value and medium of exchange. Today, aside from its brilliance and use for jewelry, the precious metal is considered a safe-haven asset, meaning it is considered a good investment in turbulent times. Gold is also considered a hedge against inflation and currency depreciation, since it does not depend on any specific issuer or government.
Who buys more Gold?
Central banks are the largest holders of Gold. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and purchase Gold to improve the perception of strength of the economy and currency. High Gold reserves can be a source of confidence for the solvency of a country. Central banks added 1,136 tons of gold worth about $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the largest annual purchase since records exist. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
What correlation does Gold have with other assets?
Gold has an inverse correlation with the US Dollar and US Treasuries, which are the main reserve and safe haven assets. When the Dollar depreciates, the price of Gold tends to rise, allowing investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken the price of Gold, while sell-offs in riskier markets tend to favor the precious metal.
What does the price of Gold depend on?
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 status as a safe haven asset. As a non-yielding asset, the price of Gold tends to rise when interest rates fall, while rising money prices tend to weigh down the yellow metal. Still, most of the moves depend on how the US Dollar (USD) performs, as the asset is traded in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold in check, while a weaker Dollar is likely to push up Gold prices.
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.
