Gold prices in India witnessed a rise on Friday, as per data from India’s Multi Commodity Exchange (MCX).
The price of gold stood at 72,116 Indian Rupees (INR) per 10 grams, showing an increase of INR 205 compared to the previous day’s price of INR 71,911.
For futures contracts, the price of gold rose to INR 71,620 per 10 grams from the previous rate of INR 71,214 per 10 grams.
Additionally, silver futures contracts saw an uptick in prices to INR 82,924 per kilogram from the earlier rate of INR 82,417 per kilogram.
Regional Gold Prices
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 74,615 |
| Mumbai | 74,465 |
| New Delhi | 74,450 |
| Chennai | 74,660 |
| Kolkata | 74,665 |
Insights into Global Market Trends
- The US GDP report released recently showed a slowdown in economic growth and persistent inflation, factors that are supporting the Comex Gold price.
- The data revealed that the US economy grew by 1.6% in the first quarter, the lowest rate since mid-2022, with inflation exceeding expectations at 3.7%, indicating that the Federal Reserve may maintain higher interest rates for an extended period.
- This led to a rise in the yield on the benchmark 10-year US government bond, which poses a challenge for gold as a non-yielding asset.
- Geopolitical tensions in the Middle East seemed to ease, impacting gold’s status as a safe-haven asset and potentially limiting its upward momentum.
- Market focus now shifts to the release of the Personal Consumption Expenditures (PCE) Price Index, which will influence the Fed’s policy decisions and USD demand, ultimately affecting the near-term direction of gold prices.
Gold FAQs
Gold has historically served as a store of value, a medium of exchange, and a safe-haven asset. It acts as protection during turbulent times and against inflation and currency depreciation.
Central banks are significant holders of gold, using it to enhance the perceived strength of their economies and currencies during uncertain periods. This has led to increased gold purchases by central banks, especially in emerging economies.
Gold exhibits an inverse relationship with the US Dollar and US Treasuries, making it an attractive asset for diversification during currency devaluations and market uncertainties.
Various factors such as geopolitical events, economic conditions, and currency fluctuations can influence gold prices. It is closely tied to the US Dollar’s performance, with a strong dollar keeping gold prices in check and a weaker dollar boosting them.
Gold prices in India witnessed a rise on Friday, as per data from India’s Multi Commodity Exchange (MCX).
The price of gold stood at 72,116 Indian Rupees (INR) per 10 grams, showing an increase of INR 205 compared to the previous day’s price of INR 71,911.
For futures contracts, the price of gold rose to INR 71,620 per 10 grams from the previous rate of INR 71,214 per 10 grams.
Additionally, silver futures contracts saw an uptick in prices to INR 82,924 per kilogram from the earlier rate of INR 82,417 per kilogram.
Regional Gold Prices
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 74,615 |
| Mumbai | 74,465 |
| New Delhi | 74,450 |
| Chennai | 74,660 |
| Kolkata | 74,665 |
Insights into Global Market Trends
- The US GDP report released recently showed a slowdown in economic growth and persistent inflation, factors that are supporting the Comex Gold price.
- The data revealed that the US economy grew by 1.6% in the first quarter, the lowest rate since mid-2022, with inflation exceeding expectations at 3.7%, indicating that the Federal Reserve may maintain higher interest rates for an extended period.
- This led to a rise in the yield on the benchmark 10-year US government bond, which poses a challenge for gold as a non-yielding asset.
- Geopolitical tensions in the Middle East seemed to ease, impacting gold’s status as a safe-haven asset and potentially limiting its upward momentum.
- Market focus now shifts to the release of the Personal Consumption Expenditures (PCE) Price Index, which will influence the Fed’s policy decisions and USD demand, ultimately affecting the near-term direction of gold prices.
Gold FAQs
Gold has historically served as a store of value, a medium of exchange, and a safe-haven asset. It acts as protection during turbulent times and against inflation and currency depreciation.
Central banks are significant holders of gold, using it to enhance the perceived strength of their economies and currencies during uncertain periods. This has led to increased gold purchases by central banks, especially in emerging economies.
Gold exhibits an inverse relationship with the US Dollar and US Treasuries, making it an attractive asset for diversification during currency devaluations and market uncertainties.
Various factors such as geopolitical events, economic conditions, and currency fluctuations can influence gold prices. It is closely tied to the US Dollar’s performance, with a strong dollar keeping gold prices in check and a weaker dollar boosting them.
