Gold prices in India fell on Wednesday, with prices on India’s Multi Commodity Exchange (MCX) showing a decrease.
The price of gold stood at 71,405 Indian Rupees (INR) per 10 grams, down INR 120 compared to the previous day’s price of INR 71,525.
For futures contracts, gold prices also saw a decline to INR 70,962 per 10 grams from the previous INR 71,136 per 10 grams.
Similarly, silver futures contracts were down to INR 82,429 per kg from INR 82,794 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 73,895 |
| Mumbai | 73,675 |
| New Delhi | 73,805 |
| Chennai | 73,900 |
| Kolkata | 73,835 |
Global Market Movers: Comex Gold price remains firm amid the uncertainties
- Minneapolis Fed Bank President Neel Kashkari noted the possibility of interest rate cuts by the Fed if inflationary pressures ease.
- Richmond Fed President Thomas Barkin stated that the current interest rates are restrictive enough to cool down the economy and bring inflation back to the Fed’s target of 2%.
- Financial markets are pricing in potential rate cuts from the Fed, with a focus on a rate cut in September.
- The upcoming release of the University of Michigan Consumer Sentiment Index is anticipated to decrease from April to May.
- Recent unrest in Gaza has impacted the market as Israeli troops launched strikes despite ceasefire proposals.
- The People’s Bank of China (PBoC) has added more gold to its reserves, continuing a trend of consecutive purchases.
Gold FAQs
Gold is traditionally viewed as a safe-haven asset, favored during times of economic uncertainty and inflation.
Central banks worldwide hold significant amounts of gold as part of their reserves to strengthen their economies.
Gold prices have an inverse correlation with the US Dollar and US Treasuries, influencing investment decisions during fluctuations in those assets.
Various factors such as geopolitical events and the strength of the US Dollar impact the price of gold in the global market.
Insight:
Adding more gold to its reserves, the People’s Bank of China continues to demonstrate its long-term strategy of diversifying its reserves and solidifying its economic stability amidst global uncertainties. The consistent increase in central banks’ gold holdings reflects a broader trend where countries are seeking to enhance their financial security and credibility through robust gold reserves. This strategic asset allocation aligns with the historical importance of gold as a store of value and a hedge against market volatilities.
