Gold prices were practically unchanged in India on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 9,197.35 Indian rupees (INR) per gram, practically stable compared to 9,192.28 inr that cost Tuesday.
The price of gold remained practically stable at 107,276.10 INR per tola from 107,217.00 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,197.35 |
| 10 grams | 91,960,19 |
| Tola | 107,276.10 |
| Troy ounce | 286,069.80 |
What moves the market today: the price of gold receives support from bets to feat cuts from the Fed and commercial uncertainty
The US dollar records a slight rebound from a minimum of more than three and a half years reached on Tuesday and fails to help the price of gold to consolidate a two -day recovery from a minimum of almost a month reached earlier this week.
The comments of the governor of the Federal Reserve, Michelle Bowman, and Governor Christopher Waller suggested that the US Central Bank could consider cutting the interest rates as soon as in the July monetary policy meeting.
Meanwhile, the president of the FED, Jerome Powell, said Tuesday that the Central Bank of the US would have relaxed the monetary policy for this moment if it were not on the highly uncertain economic path created by the tariff policies of US President Donald Trump.
When asked if Julio would be too soon for markets to expect a rate cut, Powell replied that he will depend on the data. However, operators are valuing in more than 20% the possibility that the Fed cuts the rates at the July meeting.
More significantly, there is a probability of almost 75% of a reduction of 25 basic points by the Fed at the September monetary policy meeting. This limits any additional recovery of the USD and supports the yellow metal that does not yield.
In the Front of Economic Data, the Supply Management Institute (ISM) on Tuesday that economic activity in the US manufacturing sector was contracted for the fourth consecutive month, although at a slower pace in June.
Separately, the Employment and Labor Rotation Survey (Jolts) revealed that the number of job offers stood at 7,769 million on the last business day of May, above 7,395 million in April and 7.3 million early.
The US economic agenda on Wednesday includes the publication of the ADP report on employment in the private sector, which could influence the USD and the XAU/USD before the official non -agricultural payroll report (NFP) on Friday.
Trump threatened to impose higher tariffs on Japanese imports due to the alleged lack of disposal of the latter to buy rice cultivated in the US. This occurs before the deadline of July 9 for Trump’s reciprocal tariffs and feeds uncertainty.
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.
