Gold prices fell in India on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 9,163.75 Indian rupees (INR) per gram, compared to 9,272.21 INR that cost Tuesday.
The price of gold decreased to 106,883.00 INR per tola from 108,148.30 INR per tola of the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,163.75 |
| 10 grams | 91,636.47 |
| Tola | 106,883.00 |
| Troy ounce | 285,027.20 |
What moves the market today: the bundles of the price of gold remain defensive amid the hopes of a commercial agreement between the US and China
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The US stock market indices rose abruptly on Tuesday after the US president Donald Trump, retreated in his criticism of the president of the Federal Reserve, Jerome Powell, and said he has no intention of saying goodbye before his mandate in May 2026.
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In addition, the optimistic comments of the Trump administration officials about the commercial conversations between the US and China further increased the confidence of investors and caused some benefits around the price of gold refuge gold after the recent record streak.
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The US Treasury Secretary, Scott Besent, said the tariff war between the US and China will soon be broken down. Later, the White House spokeswoman, Karoline Leavitt, told journalists that the Trump administration is preparing the land for an agreement.
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Russian President Vladimir Putin said he has a positive attitude towards any peace initiative. In response, the Ukrainian president, Volodymyr Zelenskyy, said Tuesday that we are ready to sit in any format after the high fire.
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Meanwhile, Trump’s changing position on commercial policies has eroded the trust of investors and weakened confidence in the US economy. This does not help the US dollar to preserve the modest profits of the Asian session and support the Xau/USD couple.
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In addition, the markets have been valuing the possibility that the Federal Reserve resumes its cycle of rate cuts in June and reduces indebted costs at least three times by the end of this year, further benefiting the yellow metal without performance.
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The operators now expect the publication of the global preliminary PMIS to obtain a new perspective on global economic health. This, together with trade -related developments, will influence the feeling of risk and will provide some precious metal impulse.
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.
