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At the beginning of the new fiscal year (FY) 2025-2026 in India, the price of gold is long on Tuesday after it got 32 % in the fiscal year 2024-2025.
The purchasing interest about the price of gold in India is still relentless amid speculation about its ability to reach an Indian rupee (INR) 1 for per 10 grams in the 26th fiscal year.
The increase in the purchase and tensions of the trade war and its escalation, caused by the aggressive tariff policies of US President Donald Trump, continues to operate the traditional safe armed assets.
At the time of writing this report, the price of gold changes at 8,647.24 Indian rupees per gram, after the end of the Monday of 8586.34 Indian rupees, according to the data collected by the data Fxstreeet.
Meanwhile, the price of gold has risen to 100,859.70 Indian rupees per Tola from 100149.40 Indian rupees per tulle the day before.
| Unit | Gold price in inr |
|---|---|
| 1 gram | 8,647.24 |
| 10 grams | 86,472.42 |
| Tire | 100,859.70 |
| Specify an ounce | 268,959.50 |
Global Market Engine: The purchase of gold prices remains unabated
- The intermittent American president hopes that the drawings will be limited to a smaller group of countries with greater trade imbalances, and said on Sunday that mutual definitions will mainly include all nations. This comes on Trump’s 25 % tariff on steel, aluminum, and auto imports, raising fears of the expansion of a medium global trade war.
- Moreover, investors are now convinced that the slowdown on customs tariffs in American economic activity would force Federal Reserve (Fed) to resume the price cutting course soon, despite sticky inflation. This, in turn, helps the price of safe gold to record its strongest quarter since 1986 and has reached a new standard on Tuesday.
- The markets are currently pricing in the possibility of the US Central Bank to reduce borrowing costs by 80 basis points by the end of this year. This maintains the returns of US Treasury depression, which in turn does little to help the US dollar attract any meaningful buyers and affects the non -fortified yellow metal.
- On the geopolitical front, Ukrainian officials said early on Monday that Russia bombed the city of Kharkiv in northeastern Ukraine on the second night in a row. Moreover, Ukraine President Volodimir Zelinski said that Russia fired more than 1,000 drones last week and called for a response from the United States and other allies.
- Israel ended earlier this month the ceasefire with the Hamas armed group, and the air and land strokes were renewed. In addition, the Israeli army issued the orders of the collective evacuation of Rafah, indicating a possible new ground process in the city, which raised the risk of increasing the escalation of tensions in the region.
- Traders are now looking at the main American macro versions for this week, scheduled at the beginning of a new month, starting from Jolts and ISM Manufacturing PMI on Tuesday. This will be followed by the ADP report on Wednesday, the ISM service managers in the United States on Thursday, and the US -not -cultivated salary (NFP) on Friday.
- However, the focus will remain attached to the announcement of the imminent mutual definitions of Trump later today, at 19:00 GMT. This will play a major role in influencing the feelings of the wider risks and dollar price dynamics, which in turn must provide some meaningful motivation for the Xau/USD husband.
FXSTREET calculates gold prices in India by air -conditioning (USD/Inr) with local currency units and measurement. Prices are updated daily based on the market prices that were taken at the time of publication. Prices are only to return to them and local prices can diverge a little.
Common Gold questions
Gold played a major role in human history, as it was widely used as a store for value and exchange. Currently, regardless of its brilliance and use of jewelry, the precious metal is widely seen as a safe asset, which means it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against currency decline because it does not depend on any specific source or government.
Central banks are the largest gold holders. In their goal to support their currencies at troubled times, central banks tend to diversify their reserves and buy gold to improve the powerful power and currency. High gold reserves can be a source of confidence to the dissolved country. Central banks added 1136 tons of gold worth $ 70 billion to their reserves in 2022, according to the data of the Golden Golden Council. This is the highest annual purchase since the start of the records. Central banks of emerging economies such as China, India and Turkey increase their gold reserves.
Gold has a counter -relationship with the US dollar and the United States Treasury, which is one of the main reserves and safe assets. When the dollar decreases, gold tends to rise, allowing investors and central banks to diversify their assets at turbulent times. Gold is inversely associated with the origins of risk. The assembly in the stock market weakens the price of gold, while sales in the most dangerous markets tend to prefer precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can escalate the price of gold due to its safe situation. As a lower asset than the return, gold tends to rise with low interest rates, while the high cost of money usually reaches the yellow metal. However, most moves depend on how the US dollar (USD) is behaved as the original is priced in dollars (Xau/USD). The strong dollar tends to maintain the price of gold -controlled gold, while the weakest dollar is likely to increase the price of gold.
(The automation tool was used to create this post.)
