Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 9,278.06 Indian Rupees (INR) per gram, down compared with the INR 9,333.67 it cost on Monday.
The price for Gold decreased to INR 108,217.50 per tola from INR 108,866.10 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 9,278.06 |
| 10 Grams | 92,780.74 |
| Tola | 108,217.50 |
| Troy Ounce | 288,580.10 |
Daily digest market movers: Gold price rally extends, as Iran retaliates over US bases
On Saturday, the United States (US) delivered an attack to three of Iran’s nuclear facilities – Fordow, Natanz, and Isfahan. US President Donald Trump described the mission as “a very successful attack,” and warned that “there are many other targets” if Iran remains reluctant to peace talks.
The US Operation Midnight Hammer involved B-2 Spirit bombers and Tomahawk missiles from US submarines.
Recently, the US S&P Global Manufacturing PMI for June came in at 52, above expectations of 51 but unchanged compared to the previous reading. The Services PMI dipped from 53.7 to 53.1 in June, a tick above estimates of 52.9.
The US 10-year Treasury note yield is down seven basis points (bps) at 4.306%. US real yields, which are inversely correlated with Gold prices, followed suit, down at 1.978%.
The Fed’s monetary policy report recently revealed that there are early signs that tariffs are contributing to higher inflation. However, their full impact has yet to be reflected in the data. The report added that the current policy is well-positioned and that financial stability is resilient amid high uncertainty.
Money markets suggest that traders are pricing in 57.5 basis points of easing toward the end of the year, according to Prime Market Terminal data.
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.)
