Gold prices in India fell on Wednesday, as reported by FXStreet data. The price of gold stood at ₹9,200.70 per gram, a decrease from ₹9,329.68 on Tuesday. Similarly, the price for 1 tola of gold dropped to ₹107,314.90 from ₹108,819.50 the previous day.
Here are the updated gold prices in various units:
1 Gram: ₹9,200.70
10 Grams: ₹92,008.32
1 Tola: ₹107,314.90
1 Troy Ounce: ₹286,173.80
Market Factors Pressuring Gold Prices
Gold prices have been under pressure due to several factors, including geopolitical tensions and expectations surrounding the Federal Reserve’s monetary policy decision.
A key factor driving market sentiment is the ongoing trade discussions between the US and China. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet their Chinese counterparts in Switzerland on Saturday. These talks are the first since the US imposed tariffs on China, marking a potential step toward resolving the ongoing trade dispute between the two largest economies in the world. However, there are concerns that these talks may not lead to a quick resolution, keeping traders on edge.
In addition, US President Donald Trump’s comments regarding potential tariffs on movies and pharmaceuticals have added further uncertainty, contributing to rising demand for gold as a safe-haven asset.
On the geopolitical front, there have been significant developments. Russia and Ukraine are in the midst of tense exchanges, with Russia sticking to its ceasefire plan between May 8-11 but warning of immediate action if Ukraine does not reciprocate. Similarly, Israel’s security cabinet approved plans to expand its military offensive in Gaza, further fueling concerns over global instability.
Federal Reserve’s Monetary Policy Decision in Focus
All eyes are on the Federal Reserve’s policy decision, with investors eagerly awaiting the announcement later today. The outcome of this meeting, including any indications from Fed Chair Jerome Powell about future rate cuts, could drive demand for the US Dollar and affect the outlook for gold. Since gold is a non-yielding asset, any hawkish moves by the Fed could reduce its appeal relative to other assets.
As investors digest the results of the Fed meeting and the ongoing geopolitical developments, gold prices are likely to remain volatile in the short term, with potential for both downside and upside moves depending on the market’s response to these factors.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
