Gold prices in India saw an increase on Friday, as reported by India’s Multi Commodity Exchange (MCX). The price of gold stood at 62,875 Indian Rupees (INR) per 10 grams, up INR 166 compared to the previous day. However, futures contracts saw a decrease, with gold prices dropping to INR 62,906 per 10 grams from INR 62,965. On the other hand, silver futures contracts experienced an increase to INR 72,309 per kg from INR 72,218 per kg. Additionally, the table below shows the gold prices in major Indian cities:
– Ahmedabad: 65,165 INR
– Mumbai: 64,925 INR
– New Delhi: 65,065 INR
– Chennai: 65,060 INR
– Kolkata: 65,145 INR
Global market factors impacting the price of gold include a series of unsubstantiated reports of a ceasefire between Israel and Hamas, the Houthi rebels’ claim of striking a US merchant ship in the Red Sea, China’s official Manufacturing PMI contracting for a fourth successive month, and more. Furthermore, factors such as interest rates, US Dollar behavior, and geopolitical instability play a significant role in influencing gold prices.
Central banks are the largest holders of gold, with the World Gold Council reporting that central banks added 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, the highest yearly purchase since records began. This reflects the increasing importance of gold reserves for emerging economies like China, India, and Turkey.
Gold’s status as a safe-haven asset, its inverse correlation with the US dollar and US Treasuries, and its sensitivity to geopolitical instability and economic factors dominate the market dynamics. Furthermore, as a yield-less asset, gold tends to increase with lower interest rates and depreciating currencies.
Overall, gold prices remain influenced by a wide range of factors, making it a complex and dynamic market subject to constant change and potential volatility. Investors and stakeholders need to continually monitor these factors to make informed decisions in the gold market.
