Gold prices in India saw an uptick on Tuesday, buoyed by heightened global uncertainty and expectations of policy easing by the US Federal Reserve. As concerns over US President Donald Trump’s tariff policies continue to rise, gold remains a preferred safe-haven asset, with its price climbing in tandem with global trends, particularly its Comex counterpart.
As per data compiled by FXStreet, the price of gold per gram in India reached 8,883.76 Indian Rupees (INR), up from INR 8,845.58 on Monday. Meanwhile, the price of gold per tola increased to INR 103,618.50 from INR 103,173.10 a day earlier, signaling the ongoing bullish momentum.
1 Gram: INR 8,883.76
10 Grams: INR 88,847.37
1 Tola: INR 103,618.50
1 Troy Ounce: INR 276,316.10
Global Market Factors Driving Gold’s Rise
The recent rise in gold prices can be attributed to various global economic factors. One major factor is the growing uncertainty surrounding the US-China trade war. Last week, China retaliated against US tariffs by increasing its duties on US imports to 125%, further escalating tensions between the two largest economies in the world. These developments have contributed to gold’s appeal as a safe-haven investment, with traders seeking stability amid growing risks.
Moreover, with the US Federal Reserve expected to lower interest rates in the near future, gold’s yieldless nature makes it an attractive asset for investors. The Fed is anticipated to cut rates by approximately 85 basis points this year, which has contributed to a weakened US Dollar and added bullish pressure on gold prices.
Fed officials, including Governor Christopher Waller, have expressed concerns about the economic impact of Trump’s tariff policies, with some speculating that the Fed may need to intervene with rate cuts to prevent a recession. Although the US Dollar has faced downward pressure, gold prices have remained resilient, underpinned by the continued uncertainty.
Key Focus: US Economic Data and Fed’s Upcoming Decisions
Looking ahead, traders will be closely monitoring upcoming economic data and developments. Tuesday’s release of the Empire State Manufacturing Index, along with ongoing trade talks, could offer further insights into the state of the US economy and the direction of the US Dollar. Additionally, all eyes will be on US Federal Reserve Chair Jerome Powell’s speech on Wednesday, which may provide clues regarding future rate cuts and shape the outlook for gold.
In the meantime, gold’s status as a safe-haven asset continues to make it a focal point in global markets, with geopolitical tensions and economic instability ensuring its continued upward trajectory. Investors are likely to keep a close watch on both trade-related developments and central bank actions, which will influence the direction of gold prices in the coming days.
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