The price of gold in India goes back from historical maximums on Thursday, following a similar price action in Comex’s gold.
The operators are choosing to collect their long positions in gold as the uncertainty about the ‘reciprocal tariffs’ of US President Donald Trump has finally decreased.
Late on Wednesday, Trump announced a 10% base tariff on most of the goods imported to the US, with much higher tariffs on products from dozens of countries, including its main commercial partners – China, Japan and the European Union (EU).
At the time of publication, the price of gold is quoted at 8,605.97 Indian rupees (INR) per gram, down compared to Wednesday’s closure of 8,620.08 INR, according to data collected by FXSTERET.
The price of gold corrected 100,377.60 inr per tola after ending on Wednesday at 100,543.00 INR per tola.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,605.97 |
| 10 grams | 86,058.98 |
| Tola | 100,377.60 |
| Troy ounce | 267,677.30 |
Movements in world markets: The price of gold struggles to capitalize on intradic earnings inspired by Trump’s tariffs
- The US president, Donald Trump, imposed a 10% base tariff on all higher imports and tariffs on some of the country’s main commercial partners, sending shock waves through global financial markets. In response, the China Ministry of Commerce declared that it will take energetic measures to safeguard their rights and interests.
- Developments increase the risk of expanding commercial war, which could alter global free trade and negatively affect the world economy. This, in turn, promoted the demand for traditional assets of safe refuge. Apart from this, the appearance of strong sales of the US dollar pushes the price of gold to a new historical maximum on Thursday.
- Investors now seem worried that Trump’s protectionist policies could potentially send to the US economy to a recession and are valuing the possibility that the Federal Reserve (Fed) reduces indebted costs in June. In addition, the anti-risgo flow drags the yields of the US Treasury bonds in general, undermining the USD.
- In the Front of Economic Data, the US ADP reported Wednesday that private sector employers added 155k jobs in March, well above the expected 105k and the reviewed reading of the previous month of 84K. However, this did little to impress the USD bulls in the midst of concerns about the economic repercussions of Trump’s commercial policies.
- The operators now expect the US economic agenda – the publication of the usual weekly applications for unemployment subsidy and the PMI of services of the ISM of the US ISM Friday.
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.
