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Gold recovers from earlier meltdown and is back flat ahead of US PMI release Gold recovers from earlier meltdown and is back flat ahead of US PMI release

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Gold retreats after a stellar week – Crypto News

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Gold price in India has stalled its record rally as buyers take a breather after a stellar week. Gold price on Comex has entered an upside consolidative mode due to increased uncertainty around US tariffs on China, especially with the latest back and forth on tariffs on the Chinese electronics supply chain. 

As of writing, Gold price is trading at 8,935.16 Indian Rupees (INR) per gram, down compared with the INR 8,948.33 closing on Friday, according to data compiled by FXStreet.

The price for Gold eased slightly to INR 104,217.90 per tola from INR 104,371.50 per tola on friday.

Unit measure Gold Price in INR
1 Gram 8,935.16
10 Grams 89,352.12
Tola 104,217.90
Troy Ounce 277,914.70

 

Global Market Movers: Comex Gold price holds upside amid US-China trade war concerns

  • China increased its tariffs on US imports to 125% on Friday in retaliation for US President Donald Trump’s decision to raise duties on Chinese goods to a combined 145%. This, in turn, adds to market concerns that the escalating trade war between the world’s two largest economies would weaken global economic growth and lift the safe-haven Gold price to a fresh all-time peak.
  • Meanwhile, the recent unusual spike in US Treasury yields suggests that investors are dumping US government bonds amid the weakening confidence in the US economy. Adding to this, the prospects for more aggressive policy easing by the Federal Reserve (Fed), bolstered by the US consumer inflation data released last week, keep the US Dollar depressed and further benefit the commodity.
  • The US Bureau of Labor Statistics reported last Thursday that the headline Consumer Price Index (CPI) fell 0.1% in March and the yearly rate decelerated sharply to 2.4% from 2.8% in February. Moreover, the core CPI, which strips out food and energy, rose just 0.1% from the month before and came in at 2.8% for the 12 months ended in March, marking its lowest rate in nearly four years.
  • Traders are now pricing in 90 basis points of Fed rate cuts by year-end 2025, which might further contribute to driving flows towards the non-yielding yellow metal. Moreover, investors expect tariffs to push inflation higher in the coming months. This could further underpin the XAU/USD’s status as a hedge against rising prices and support prospects for a further near-term appreciation.
  • Market participants this week will closely scrutinize comments from influential FOMC members, including Fed Chair Jerome Powell on Wednesday, for cues about the future rate-cut path. Apart from this, the US monthly Retail Sales figures, also due on Wednesday, will drive the USD demand and provide some meaningful impetus to the precious metal during the latter half of the week.

FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.

 

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.

(An automation tool was used in creating this post.)

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