Gold prices in India saw an increase on Thursday, with data from India’s Multi Commodity Exchange (MCX) showing that the price of gold stood at 64,867 Indian Rupees (INR) per 10 grams, which was up by INR 447 compared to the previous day. Futures contracts also saw a rise, with gold prices increasing to INR 65,475 per 10 grams. Silver futures contracts also saw an increase to INR 74,246 per kg.
In major Indian cities, the price of gold varied, with Ahmedabad at 67,215 INR, Mumbai at 66,840 INR, New Delhi at 66,875 INR, Chennai at 67,230 INR, and Kolkata at 67,010 INR per 10 grams.
The global market for gold was influenced by various factors including bets on the Federal Reserve cutting interest rates, geopolitical risks, and economic troubles in China. This led to the Comex Gold price reaching a record high. Fed Chair Jerome Powell’s statements on potential rate cuts and market expectations of a June rate cut also had an impact on the market.
Geopolitical developments, such as the Houthi missile strike in Yemen and the resulting escalation of military actions in the Middle East, supported the upward trend of gold prices as investors sought safe-haven assets.
Gold is often viewed as a safe-haven asset, particularly during turbulent times, and its price is influenced by a variety of factors including inflation, currency depreciation, and global economic conditions. Central banks are significant holders of gold and often increase their reserves during uncertain times to strengthen their economies.
The price of gold is also influenced by its relationship with the US Dollar and US Treasuries, as well as market movements in risk assets. A weaker dollar and lower interest rates tend to push gold prices higher, while a stronger dollar can suppress the price of gold.
Overall, the price of gold remains subject to a range of factors, both domestic and international, and careful monitoring of market dynamics is essential for investors looking to navigate this asset class effectively.
