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XAU/USD bulls reach a critical milestone on daily chart ahead of Jackson Hole XAU/USD bulls reach a critical milestone on daily chart ahead of Jackson Hole

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Rates in main Indian cities – Crypto News

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Gold prices fell in India on Thursday, according to data from India’s Multi Commodity Exchange (MCX).

Gold price stood at 61,208 Indian Rupees (INR) per 10 grams, down INR 100 compared with the INR 61,308 it cost on Wednesday.

As for futures contracts, Gold prices increased to INR 61,084 per 10 gms from INR 61,024 per 10 gms.

Prices for Silver futures contracts decreased to INR 74,590 per kg from INR 72,826 per kg.

Major Indian city Gold Price
Ahmedabad 63,360
Mumbai 63,190
New Delhi 63,350
Chennai 63,320
Kolkata 63,370

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Global Market Movers: Comex Gold price rebounds on Thanksgiving Day

  • The emergence of fresh selling around the US Dollar assists the Comex Gold price to regain positive traction during the Asian session on Thursday.
  • The hawkish FOMC minutes-inspired USD recovery falters in the wake of expectations that the Federal Reserve (Fed) will not hike rates further.
  • Policymakers reiterated the stance to keep rates higher for longer and remain committed to tightening policy further if progress in controlling inflation falters.
  • The current market pricing, however, indicates a greater than 50% chance that the US central bank will start cutting interest rates by May 2024.
  • Dovish Fed expectations, meanwhile, overshadow the better-than-expected US labor market and consumer sentiment data released on Wednesday.
  • The number of Americans filing new claims for unemployment benefits fell more than expected last week, to 209K, or the lowest level in more than a month.
  • The University of Michigan’s survey of consumer sentiment showed that US consumers’ inflation expectations rose for a second straight month in November.
  • Other US data showed orders for long-lasting US manufactured goods fell more than expected in October, pointing to slowing economic demand.
  • Lighter trading volumes on the back of the US Thanksgiving holiday and repeated failures ahead of the $2,010 level warrant caution for bullish traders.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

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