Gold prices rose in India on Thursday, according to FXStreet data. The price for gold stood at INR 9,216.33 per gram, up from INR 9,146.91 on Wednesday. Similarly, the price for gold increased to INR 107,496.20 per tola, compared to INR 106,687.80 per tola the previous day.
1 Gram: INR 9,216.33
10 Grams: INR 92,162.32
1 Tola: INR 107,496.20
1 Troy Ounce: INR 286,656.60
Market Movers: Safe-Haven Demand, Geopolitical Tensions, and Fed’s Decision
The increase in gold prices can be attributed to a renewed demand for safe-haven assets, bolstered by several geopolitical events and the Fed’s decision to keep interest rates steady.
Geopolitical Risks
US President Donald Trump’s refusal to lower the 145% tariffs on China has kept trade-war risks high, supporting the demand for gold as a safe-haven asset. Meanwhile, military tensions have escalated in various regions. Moscow’s airports were shut down due to a Ukrainian drone attack, and conflicts in the Middle East, particularly involving Israel and Yemen, have heightened geopolitical uncertainties. These events continue to underpin gold prices.
Federal Reserve’s Caution
The Federal Reserve held its key interest rate unchanged in a range between 4.25% and 4.5%. In its statement, the Fed highlighted increasing uncertainty about the economic outlook, with Fed Chair Jerome Powell suggesting the central bank would not lean toward cutting rates in the near future.
US-China Trade Talks
While optimism surrounding US-China trade talks initially rose, Trump’s firm stance on tariffs has put a lid on expectations, providing further support to the safe-haven appeal of gold.
Upcoming Data to Watch
The market will remain focused on Trump’s upcoming press conference and the release of US Weekly Initial Jobless Claims data, which may influence the US dollar and, consequently, gold prices. Any surprises in these events could trigger significant movements in the precious metal market.
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