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 11,882.52 Indian Rupees (INR) per gram, up compared with the INR 11,731.88 it cost on Monday.

The price for Gold increased to INR 138,595.00 per tola from INR 136,838.30 per tola a day earlier.

Daily Digest Market Movers: Gold remains well supported by flight to safety and dovish Fed bets

With no resolution in sight, the stalemate over how to reopen the US government will extend into a third week as Democrats and Republicans continue to trade blame for the shutdown that began on October 1. The Senate returns on Tuesday and is expected to vote again on the funding plan, which has fallen short of the necessary 60-vote threshold seven times.

US President Donald Trump reignited trade tensions on Friday and threatened to impose a sweeping 100% tariff on all Chinese goods from November 1 in retaliation for China's enhanced restrictions on the export of rare earths. This marks another escalation in the trade war between the world's two largest economies and continues to benefit the safe-haven Gold.

Trump softened his stance on Sunday and posted on Truth Social that the US does not wish to hurt China. Trump added that both countries wish to avoid economic pain, easing concerns about a trade war between the world's two largest economies and boosting investors' confidence. This, however, fails to hinder the commodity's strong follow-through positive move.

On the geopolitical front, Ukrainian long-range drones hit at least five reservoirs in the Russian-occupied Crimean peninsula. Meanwhile, Russian forces attacked Kharkiv, Ukraine's second-largest city, with guided bombs on Monday. The intensifying Russia-Ukraine war turns out to be another factor that contributes to the precious metal's record-setting run.

Traders have now fully priced in the probability that the US Federal Reserve will lower borrowing costs by 25 basis points in October and see a 90% chance for another rate reduction in December. The dovish outlook provides an additional boost to the non-yielding yellow metal and backs the case for an extension of the recent well-established uptrend.

The US Dollar is looking to build on the previous day's positive move and remains close to its highest level since early August, touched last week, though it does little to dent the underlying bullish sentiment surrounding the XAU/USD. This, in turn, suggests that the path of least resistance for the commodity remains to the upside.

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.)