The fears of an escalation of the commercial war between the US and China and its impact on the US economy remain unchanged, causing a new fall of the US dollar. This promoted the resumption of the recovery record of the price of gold. The price of gold reached a new historical maximum of 9.4.8 Indian rupees (INR) per gram on Wednesday,
At the time of publication, the price of gold is quoted at 9,061.05 INR per gram, rising from the liquidation price of Tuesday of 8,895.96 INR, according to data collected by FXSTRET.
Meanwhile, the price of gold increased to 105,686.60 INR per tola, compared to 103,760.70 INR by Tola a day before.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,061.05 |
| 10 grams | 90,610.72 |
| Tola | 105,686.60 |
| Troy ounce | 281,831,20 |
Global market movements: Gold price bundles maintain control amid uncertainties related to trade
- The president of the USA, Donald Trump, took a 180 -degree turn last week and suddenly retreated in his high reciprocal rates on most US business partners for 90 days. In addition, Trump suggested that it could grant exemptions on car -related tariffs after removing smartphones, computers and some other electronic of the high rates on China.
- However, Trump said the exemptions were only temporary and kept 145% tariffs on other Chinese imports. Trump also promised to reveal tariffs on imported semiconductors in the next week and also threatened to impose levies on pharmaceutical products in the not too distant future, increasing uncertainty.
- China, on the other hand, increased its tariffs on US imports to 125% last Friday, feeding concerns that a commercial war of reprisals between the two largest economies in the world would weaken global growth. This continues to weigh in the feeling of investors and benefits the safe refuge assets, raising the price of gold to a new historical maximum on Wednesday.
- Meanwhile, Trump’s rapid changes in rates ads have eroded the faith of investors in US policies and weakened confidence in the US economy. To this is added that the expectations that the Federal Reserve (FED) will reduce the indebtedness costs by 100 basic points in 2025 sent the US dollar downward, at its lowest level since April 2022 last week.
- The data published on Wednesday showed that China’s economy grew by 5.4% in the first quarter compared to the previous year, exceeding expectations. Other Chinese macroeconomic data – retail sales, industrial production and investment in fixed assets – were also better than estimated, although they were overshadowed by the increase in commercial tensions with the US.
- Investors now expect comments from the president of the FED, Jerome Powell, to obtain more clues about the trajectory of interest rates, which will play a key role in influencing the dynamics of the USD price. Apart from this, trade related developments should provide significant impulse to the Xau/USD torque, which seems to be ready to prolong the upward trend.
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.
