India Gold price today: Gold corrects in the aftermath of Trump's tariffs reveal
Gold price in India retreats from record highs on Thursday, following a similar price acton in Comex Gold.
Traders are resorting to cashing in on their Gold long positions as the uncertainty around US President Donald Trump's 'reciprocal tariffs' has fnally waned.
Late Wednesday. Trump announced a 10% baseline tariff on most goods imported to the US, with much higher duties on products from dozens of countries, including its major trading partners - China, Japan and the European Union (EU).
At the press time, Gold price is trading at 8,605.97 Indian Rupees (INR) per gram, down compared with Wednesday's close of INR 8,620.08, according to data compiled by FXStreet.
Gold price corrected to INR 100,377.60 per tola after finishing Wednesday at INR 100,543.00 per tola.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 8,605.97 |
| 10 Grams | 86,058.98 |
| Tola | 100,377.60 |
| Troy Ounce | 267,677.30 |
Global Market Movers: Gold price struggles to capitalize on intraday gains inspired by Trump's tariffs
- US President Donald Trump imposed a 10% baseline tariff on all imports and higher duties on some of the country's biggest trading partners, sending shockwaves through global financial markets. In response, China’s Commerce Ministry stated that it will resolutely take countermeasures to safeguard its rights and interests.
- The developments raise the risk of a widening trade war, which could upset global free trade and impact negatively on the world economy. This, in turn, boosted demand for traditional safe-haven assets. Apart from this, the emergence of heavy US Dollar selling pushes the Gold price to a fresh record high on Thursday.
- Investors now seem worried that Trump's protectionist policies could potentially send the US economy into a recession and are pricing in a 70% chance that the Federal Reserve (Fed) will lower borrowing costs in June. Moreover, the anti-risk flow drags the US Treasury bond yields lower across the board, undermining the USD.
- On the economic data front, the US ADP reported on Wednesday that private-sector employers added 155K jobs in March – far more than the 105K expected and the previous month's revised reading of 84K. This, however, did little to impress the USD bulls amid concerns about the economic fallout from Trump's trade policies.
- Traders now look forward to the US economic docket – the release of the usual Weekly Jobless Claims and the US ISM Services PMI. Apart from this, trade-related headlines might influence the USD and provide some impetus to the XAU/USD pair ahead of the closely-watched US Nonfarm Payrolls (NFP) report on Friday.
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.)