Gold price on March 11: Rates in main Indian cities
Gold prices rose in India on Monday, according to data from India’s Multi Commodity Exchange (MCX).
Gold price stood at 65,517 Indian Rupees (INR) per 10 grams, up INR 510 compared with the INR 65,007 it cost on Friday.
As for futures contracts, Gold prices decreased to INR 65,987 per 10 gms from INR 66,023 per 10 gms.
Prices for Silver futures contracts increased to INR 74,281 per kg from INR 74,262 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 67,775 |
| Mumbai | 67,415 |
| New Delhi | 67,535 |
| Chennai | 67,840 |
| Kolkata | 67,580 |
Global Market Movers: Comex Gold price pauses after the recent record-setting rally
- Data released on Friday revealed that the US unemployment rate rose to its highest level in two years, lifting bets for a June rate cut by the Federal Reserve and pushing the Comex Gold price to a fresh record high.
- The headline NFP showed that the US economy added 275 new jobs in February as compared to the 200K estimated, though the previous month’s reading was revised down to 229K from the 353K reported.
- Adding to this, wage inflation, as measured by the change in the Average Hourly Earnings, rose by 4.3% on a yearly basis, also falling short of market expectations and January’s growth of 4.4%.
- The possibility of a May interest rate cut by the Fed climbed to around 30% after the crucial jobs report, though the June policy meeting is still the most likely expected timing for any such move.
- The yield on the 10-year US government bond dived to a more than one-month trough, dragging the US Dollar to its lowest level since mid-January and benefitting the non-yielding metal.
- A modest USD uptick prompts some intraday sellers during the Asian session on Monday, albeit firming expectations for an imminent shift in the Fed’s policy stance should help limit losses.
- Furthermore, geopolitical tensions, along with expectations that the global economy could weaken in 2024, might continue to drive flows towards the safe-haven XAU/USD and act as a tailwind.
- Investors now look forward to the release of the latest US consumer inflation figures on Tuesday for fresh cues about the Fed’s rate-cut path and before positioning for the next leg of a directional move.
(An automation tool was used in creating this post.)
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.