Gold prices fell in India on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 9,078.38 Indian rupees (INR) per gram, a decrease compared to 9,162.60 inr that cost Monday.
The price of gold decreased to 105,888.50 INR per tola from 106,870.80 INR per tola from the previous day.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,078.38 |
| 10 grams | 90,806.52 |
| Tola | 105,888.50 |
| Troy ounce | 282,373.60 |
What moves the market today: the price of gold is pressed for the decrease in the demand for safe refuge and a modest rebound of the USD
The recent movements of China to exempt certain US assets from their retaliation tariffs showed a willingness to display tensions between the two greatest economies in the world. In addition, US Treasury Secretary Scott Besent said many of the main US business partners on Monday have made “very good” tariff proposals.
The signals of commercial progress support market optimism. Meanwhile, the US dollar recovers traction and moves away the flows of the price of gold as a safe refuge.
However, investors remain on alert due to mixed signals about the state of negotiations between the US and China. In fact, US President Donald Trump said last week that commercial conversations with China were ongoing, although China has denied that tariff negotiations are being carried out.
Meanwhile, operators expect the Federal Reserve to resume their rate cuts cycle in June. In addition, the current market assessment indicates the possibility of at least three rates cuts by the end of this year. The lower indebtedness costs could help the yellow metal without performance to maintain a short term.
Russian President Vladimir Putin declared a unilateral fire of 72 hours in the Ukraine conflict from May 8, although the president of Ukraine, Volodymyr Zelensky, dismissed the three -day truce. In addition, the participation of North Korea in the war between Russia and Ukraine keeps the geopolitical risk premium at stake.
The operators now expect the publication of the US Jolts job offers data to obtain a new impulse later on Tuesday. Apart from this, US personal consumption expenses on Wednesday and the Non -Agricultural Payroll (NFP) report could provide a new perspective on the Fed policy.
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.
