India Gold price today: Gold eases from all-time highs
Despite looming tariff uncertainty, the US Dollat attempts a bounce heading toward Good Friday, fuelling a mild retreat in Comex Gold price from all-time highs of $3,358 reached early Thursday. Gold price in India follows suits and corrects slightly on Thursday.
Traders look to cash in on their Gold long positions, bracing for the Easter weekend.
When writing, Gold price is trading at 9,162.30 Indian Rupees (INR) per gram, down compared with the INR 9,195.28 it cost on Wednesday, according to data compiled by FXStreet.
Meanwhile, the price for Gold edged a tad lower to INR 106,863.80 per tola from INR 107,251.90 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,162.30 |
| 10 Grams | 91,620.00 |
| Tola | 106,863.80 |
| Troy Ounce | 284,975.40 |
Global Market Movers: Gold price pause for a breather amid receding safe-haven demand
- The US Census Bureau reported on Wednesday that Retail Sales climbed 1.4% in March, the most in over two years. The reading followed a revised 0.2% increase in the previous month and was better than the market expectation for a 1.3% rise.
- Adding to this Federal Reserve Chair Jerome Powell said the US central bank was not inclined to cut interest rates in the near future, citing the potential inflationary pressure stemming from US President Donald Trump's aggressive tariffs policies.
- Meanwhile, the equity market in Asia-Pacific largely advanced on Thursday, which, along with the emergence of some US Dollar (USD) buying, holds back traders from placing fresh bullish bets and caps the upside for the Gold price.
- US President Donald Trump kickstarted a bitter trade war with China earlier this month and raised tariffs to an unprecedented 145%. China retaliated with 125% duties on US goods and imposed new export licensing restrictions on seven rare earths.
- The US government also imposed new licensing requirements and limited exports of H20 artificial intelligence chips to China. Meanwhile, China’s Foreign Ministry said that Beijing will pay no attention if the US continues to play the tariff game.
- Investors remain worried that tit-for-tat tariffs the world's two countries are imposing on one another will hinder global economic growth. This keeps a lid on any optimism in the market and continues to support the safe-haven commodity.
- Moreover, traders are still pricing in the possibility that the US central bank will resume its rate-cutting cycle in June. This holds back the USD bulls from placing aggressive bets and further acts as a tailwind for the non-yielding yellow metal.
- Traders now look forward to the US economic docket – featuring the release of the usual Weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and housing market data – and Fed-speak to grab short-term opportunities.
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling 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 Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
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