Amid heightened global trade war tensions and fears of a US recession, induced by speculation surrounding “higher and broader tariffs” from US President Donald Trump this week, Gold price in India tracked the record-setting rally in Comex Gold price on Monday.
At the time of writing, the Gold price is trading at 8,574.54 Indian Rupees (INR) per gram, advancing from Friday’s close of INR 8,480.11, according to data calculated by FXStreet.
Meaanwhile, Gold price increased to INR 100,011.10 per tola, up sharply from INR 98,910.39 per tola on Friday.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 8,574.54 |
| 10 Grams | 85,738.77 |
| Tola | 100,011.10 |
| Troy Ounce | 266,696.00 |
Global Market Movers: Gold price continues to scale higher as trade jitters boost safe-haven demand
- US President Donald Trump rattled markets last week by imposing a 25% levies on all non-American cars and light trucks ahead of the so-called reciprocal tariffs set to take effect on April 2. Adding to this, the Wall Street Journal reported on Sunday that the Trump administration is considering higher trade tariffs against a broader range of countries, pushing the safe-haven Gold price to a fresh record high during the Asian session on Monday.
- Trump said on Sunday that he was very angry and pissed off at Russian President Vladimir Putin, and threatened massive tariffs on Russian oil and potential bombings in Iran. Trump also lashed out at Ukrainian President Volodymyr Zelenskiy and warned that he would face big problems if he backed out of the critical rare earth minerals deal. This further weighs on investors’ sentiment and contributes to the global flight to safety.
- Meanwhile, US data released on Friday showed that the Personal Consumption Expenditures (PCE) Price Index rose 0.3% in February and 2.5% from a year ago – in line with market expectations. However, the core gauge, which excludes volatile food and energy prices, showed a 0.4% increase for the month. This marked the biggest monthly gain since January 2024 and lifted the 12-month inflation rate to 2.8% during the reported month.
- Additional details revealed that Consumer Spending accelerated 0.4% following a downwardly revised 0.3% fall in January, while Personal Income posted a 0.8% rise during the reported month. Separately, a survey from the University of Michigan showed that consumers’ 12-month inflation expectations soared to the highest level in nearly 2-1/2 years in March, which further benefits the precious metal’s hedge against rising prices.
- This comes on top of persistent worries about slowing US economic growth and fuels stagflation fears, dragging the US Dollar lower for the third straight day and further offering support to the XAU/USD pair. The commodity reacts little to China’s official Purchasing Managers’ Index (PMI), which showed that the Manufacturing PMI edged higher to 50.5 while the Non-Manufacturing PMI jumped to 50.8 in March.
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.)