Gold prices in India saw an uptick on Tuesday, with the price reaching 72,985 Indian Rupees (INR) per 10 grams, reflecting a rise of INR 666 compared to the previous day’s price of INR 72,319.
Meanwhile, Gold futures contracts also showed an increase, reaching INR 72,461 per 10 grams from the previous INR 72,277 per 10 grams. On the other hand, Silver futures contracts saw a slight decrease to INR 83,515 per kg from INR 83,851 per kg.
Regional Gold Prices
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 75,635 |
| Mumbai | 75,500 |
| New Delhi | 75,605 |
| Chennai | 75,710 |
| Kolkata | 75,720 |
Insight into Global Market Movements
- The current global risk sentiment remains delicate due to the escalating Middle East crisis and speculations surrounding the Federal Reserve’s stance on interest rates, which is positively impacting the Comex Gold price.
- Investors are adjusting their expectations for the timing of the first interest rate cut by the Fed, shifting it to September from the previously anticipated June, influenced by concerns about inflation levels and the resilience of the US economy.
- Recent US Retail Sales data, indicating a 0.7% monthly increase in March, surpassing estimates, has boosted confidence in consumer spending and potential inflationary pressures in the near future.
- Despite a rise in the yield on the benchmark 10-year US government bond, the US Dollar’s strength, reaching a five-month peak, could temper further gains for the XAU/USD pair.
- Upcoming releases of housing market data and Industrial Production figures in the US, combined with Fedspeak, may provide additional momentum for Gold in the market.
Gold FAQs
Gold has historical significance as a store of value, a medium of exchange, and a safe-haven asset during turbulent times. It is also viewed as a hedge against inflation and depreciating currencies.
Central banks are significant holders of Gold as a way to support their currencies and signify economic strength. Emerging economies like China, India, and Turkey are rapidly increasing their Gold reserves.
Gold often exhibits an inverse correlation with the US Dollar and US Treasuries, making it a valuable asset for diversification during times of market instability.
Various factors, such as geopolitical events, economic data, and currency movements, can influence the price of Gold. Additionally, the performance of the US Dollar plays a significant role in shaping Gold prices.
