India Gold price today: Gold rises, according to FXStreet data

Gold prices rose in India on Tuesday, according to data compiled by FXStreet.

The price for Gold stood at 9,366.07 Indian Rupees (INR) per gram, up compared with the INR 9,352.03 it cost on Monday.

The price for Gold increased to INR 109,234.00 per tola from INR 109,070.20 per tola a day earlier.

Daily Digest Market Movers: Gold benefits from bets for an imminent rate cut by the Fed in September

Traders trimmed their bets for a jumbo interest rate cut by the Federal Reserve in September following last Thursday's release of a hotter US Producer Price Index, which rose in July at the fastest monthly pace since 2022. Moreover, the preliminary data from the University of Michigan showed on Friday that the one-year inflation expectations climbed to 4.9% from 4.5% and the five-year forecast increased to 3.9% from 3.4%.

The data indicates a gain of momentum in price pressures and backs the case for a hawkish Fed, which, in turn, is seen acting as a headwind for the non-yielding Gold. Traders, however, are still pricing in a nearly 85% chance that the US central bank will lower borrowing costs in September and deliver at least two 25 basis points rate cuts by the year-end. This keeps a lid on the US Dollar and lends support to the commodity.

Meanwhile, the S&P Global Ratings agency affirmed the US 'AA+/A-1+' sovereign ratings while maintaining a 'Stable' outlook on steady, albeit high, deficits. The agency expects US net general government debt to approach 100% of GDP, given structurally rising nondiscretionary interest and aging-related expenditure. The agency further noted that the outlook indicates fiscal deficit outcomes won't meaningfully improve, but doesn't project persistent deterioration over the next several years.

On the geopolitical front, Russian President Vladimir Putin has agreed to meet Ukrainian President Volodymyr Zelenskyy for a peace summit. This raises hopes for a breakthrough towards ending the protracted Russia-Ukraine war and might cap any meaningful appreciation for the safe-haven precious metal. Traders might also opt to wait for more cues about the Fed's rate-cut path before placing fresh directional bets.

Hence, the focus will remain glued to the release of the FOMC meeting Minutes on Wednesday and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium. Apart from this, traders will take cues from flash PMI prints on Thursday, which will be looked to for fresh insight into the global economic health. This, in turn, might infuse some volatility around the XAU/USD pair during the latter part of the week.

In the meantime, Tuesday's US housing market data - Building Permits and Housing Starts - might do little to influence the precious metal. That said, comments from influential FOMC members would drive the USD demand, which, along with the broader risk sentiment, should contribute to producing short-term trading opportunities around the XAU/USD pair.

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.

(An automation tool was used in creating this post.)