Gold prices in India saw an increase on Friday, according to data compiled by FXStreet. The price of gold rose to ₹9,149.95 per gram, up from ₹9,122.89 on Thursday. The price of gold per tola also climbed to ₹106,724.40, compared to ₹106,407.60 the previous day.
Gold Price Breakdown (INR)
1 Gram: ₹9,149.95
10 Grams: ₹91,500.50
1 Tola: ₹106,724.40
1 Troy Ounce: ₹284,595.60
Geopolitical and Economic Influences
The upward movement in gold prices comes amid ongoing geopolitical risks, which continue to support the metal’s safe-haven appeal. On Thursday, US President Donald Trump and UK Prime Minister Keir Starmer announced a limited bilateral trade deal, which left a 10% tariff on goods imported from the UK. Additionally, US Commerce Secretary Howard Lutnick revealed that the US is set to unveil a series of trade deals over the coming month, though a 10% tariff on most countries is expected to remain in place.
Meanwhile, reports indicate that the Trump administration is considering reducing tariffs on China from 145% to 50% as early as next week. This potential shift is fueling optimism in the market and could limit significant movements in gold’s price against the US dollar (XAU/USD).
The Federal Reserve also made headlines on Wednesday, signaling that it is not inclined to cut interest rates in the near future, despite the growing uncertainty around the economic outlook. This stance has allowed the US dollar to strengthen, rising to a four-week high during the Asian session on Friday. As a result, the stronger dollar has caused some investors to move away from non-yielding assets like gold.
Geopolitical Risks Remain Elevated
Tensions between Russia and Ukraine are also playing a role in gold’s price movements. Both countries reported attacks on their forces on the first day of a three-day ceasefire declared by Russian President Vladimir Putin. Meanwhile, Israel’s escalating conflict with Iran-backed Houthis in Yemen, along with fears of a broader military conflict along the India-Pakistan border, keeps geopolitical risks at the forefront, potentially supporting demand for gold as a safe-haven asset.
Looking Ahead: US Federal Reserve Speeches and Market Outlook
A number of influential Federal Open Market Committee (FOMC) members are scheduled to speak on Friday, and investors will be closely monitoring these remarks for any indications regarding the future direction of interest rates. These insights will be crucial for driving demand for the US dollar and could offer new momentum for gold, which remains on track to post modest gains for the week.
Gold’s ability to hold steady amid these geopolitical and economic uncertainties reflects its continued appeal as a store of value, especially as global risks persist.
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