Gold prices returned to the positive zone in India on Easter Monday, following the renewed record rally in its Comex counterpart. The incessant mass sale of the US dollar (USD) remains the main reason for the resurgence of purchase in the price of gold in Comex called in USD.
The USD remains heavy against its main currency rivals due to the increased risks for the independence of the US Federal Reserve (Fed) and the growing fears of recession, fed by the escalation of the commercial war between the US and China.
The price of gold rises to 9,280.92 Indian rupees (INR) per gram, at the time of writing, after Friday’s closure of 9,109.97 INR, according to data collected by FXSTRET.
The price of gold advances at 108,249.90 INR per tola from 106,256.90 inr per tola on Friday.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 9,280.92 |
| 10 grams | 92,809.48 |
| Tola | 108,249.90 |
| Troy ounce | 288,687.80 |
Global market engines: the price of gold continues to benefit from a combination of support factors
- Investors are still concerned about the possible economic repercussions of the commercial tariffs of the US president, Donald Trump, and the rapid escalation of the commercial war between the US and China, pushing the price of the gold of safe refuge to a new historical maximum on Monday. In fact, Trump recently imposed tariffs of up to 145% on certain Chinese products, with some rights that supposedly reach 245%. In retaliation, China has imposed 125% tariffs on US products.
- Meanwhile, Trump’s aggressive commercial policies could harm the world commercial order and trigger a recession in the US, in turn, drags the US dollar at its lowest level since April 2022 and further benefits the precious metal. The USD bulls ignored the hard line comments of the president of the Federal Reserve, Jerome Powell, who said the Central Bank is well positioned to wait more clarity before making changes in the policy position.
- In addition, market participants are still valuing the possibility that the Fed resumes their cycle of feat cuts in June and reduces indebtedness costs at a complete percentage point by the end of this year. This turns out to be another factor that contributes to direct flows to the non -generating yellow metal, in the midst of thin negotiation conditions due to Easter Monday’s holiday and despite the overcompra conditions in the daily chart.
- Iran and the US agreed on Saturday to initiate discussions at expert level to design a framework for a possible nuclear agreement. In addition, the high day of the Russian president, Vladimir Putin, in Ukraine on Saturday, aroused hope that tensions could be broken. However, this is little to increase investor confidence or reduce the demand for traditional shelter assets, supporting the perspectives of greater appreciation of the Xau/USD couple.
- There are no relevant economic data scheduled for publication in the US on Monday, although a scheduled speech by Chicago’s president, Austen Goolsbee, could influence the USD. Apart from this, trade -related developments should provide a momentum to the merchandise. Market attention will then be transferred to the publication of the preliminary PMIs on Wednesday, which should offer a new perspective on global economic health.
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.
