Forex News
- Japanese Yen remains depressed, as fiscal concerns and political uncertainty offset the upbeat data.
- Intervention fears and the BoJ’s hawkish tilt might hold back the JPY bears from placing fresh bets.
- Expectations for more Fed easing act as a headwind for the USD and could cap the USD/JPY pair.
The Japanese Yen (JPY) extends the descending trend against its American counterpart for the fourth straight day on Wednesday and drops to a nearly two-week low during the Asian session. Investors remain concerned about Japan's fiscal health under Prime Minister Sanae Takaichi's expansionary spending policy. Apart from this, domestic political uncertainty ahead of the snap election on February 8 turns out to be another factor undermining the JPY, pushing the USD/JPY pair further beyond the 156.00 mark.
Meanwhile, traders remain on high alert amid the possibility of a coordinated Japan-US intervention to stem the JPY's decline. Moreover, the Bank of Japan's (BoJ) gradual policy tightening narrative might hold back the JPY bears from placing aggressive bets. Apart from this, bets that the US Federal Reserve (Fed) will cut interest rates two more times fail to assist the US Dollar (USD) in attracting any meaningful buyers and might contribute to capping the USD/JPY pair ahead of the US macro data, due later today.
Japanese Yen bears retain control amid fiscal woes and political uncertainty
- Japan’s services sector growth accelerated at the start of 2026, with business activity expanding for the tenth consecutive month and at its fastest pace in almost a year. In fact, the Jibun Bank Services PMI climbed to 53.7 compared to 51.6 in December and consensus estimates for a reading of 53.4.
- The data signaled a more durable recovery in the services sector, which accounts for roughly 70% of Japan’s GDP. The market reaction, however, turns out to be muted amid nervousness over Japan’s fiscal outlook, fueled by Prime Minister Sanae Takaichi’s aggressive spending and tax cut plans.
- In fact, Takaichi has pledged to suspend the 8% consumption tax on food for two years as part of her campaign ahead of a snap lower house election on February 8. This puts the spotlight back on Japan's already strained public finances, which continue to undermine the Japanese Yen on Wednesday.
- The unusual rate check by the New York Federal Reserve recently was seen as the strongest signal to date that Japanese and US authorities were working together to stem the JPY's decline. This lowers the threshold for intervention and could limit JPY losses amid hawkish Bank of Japan bets.
- The Summary of Opinions from the BoJ's January meeting, released on Monday, showed that policymakers debated mounting price pressures from a weak JPY. Moreover, board members judged that further rate increases were appropriate over time, which could lend support to the JPY.
- The US Dollar, on the other hand, struggles to build on last week's recovery from a four-year low, bolstered by the nomination of Kevin Warsh as the next Fed chair. Even the passage of the government funding package to end a partial shutdown does little to provide any impetus to the USD.
- Traders now look forward to the release of the US ADP report on private-sector employment and the US ISM Services PMI. Apart from this, comments from influential FOMC members might influence the USD demand amid bets for two more rate cuts in 2026 and drive the USD/JPY pair.
USD/JPY needs to surpass 156.50 confluence hurdle to back case for further gains
Wednesday's move beyond the 156.00 mark comes on top of the overnight breakout through the 50% retracement level of the 159.13-152.06 downfall and favors the USD/JPY bulls. The Relative Strength Index (14) sits at 66.9, below overbought, aligning with a firm but maturing advance.
However, the Moving Average Convergence Divergence (MACD) histogram remains positive but is contracting, suggesting fading bullish momentum. The MACD line stands above the Signal line, and both hover around the zero line, reinforcing a cautious, transitional tone.
Hence, any subsequent move up is more likely to confront stiff resistance near the 156.51 confluence – comprising the 100-period Simple Moving Average (SMA) on the 4-hour chart and the 61.8% Fibonacci retracement level. A sustained break above the said barrier is needed to shift the near-term tone to the upside.
A clearance would open the 78.6% retracement at 157.62, while failure to overcome that barrier would leave the recovery vulnerable to renewed pullbacks. Meanwhile, the USD/JPY pair holds beneath the downward sloping 100-period SMA, suggesting that the move higher is likely to remain capped.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.14% | 0.39% | -0.00% | -0.06% | 0.32% | -0.06% | |
| EUR | 0.11% | -0.03% | 0.50% | 0.11% | 0.06% | 0.43% | 0.06% | |
| GBP | 0.14% | 0.03% | 0.54% | 0.14% | 0.08% | 0.45% | 0.08% | |
| JPY | -0.39% | -0.50% | -0.54% | -0.38% | -0.43% | -0.07% | -0.43% | |
| CAD | 0.00% | -0.11% | -0.14% | 0.38% | -0.05% | 0.31% | -0.05% | |
| AUD | 0.06% | -0.06% | -0.08% | 0.43% | 0.05% | 0.37% | 0.04% | |
| NZD | -0.32% | -0.43% | -0.45% | 0.07% | -0.31% | -0.37% | -0.37% | |
| CHF | 0.06% | -0.06% | -0.08% | 0.43% | 0.05% | -0.04% | 0.37% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
- Australian Dollar holds ground as China's Services PMI rises in January.
- The AUD gained as markets priced an 80% chance of a May hike and 40 basis points of further tightening.
- The US Dollar remains subdued for a second consecutive session.
The Australian Dollar (AUD) advances against the US Dollar (USD) on Wednesday after registering over 1% gains in the previous session. The AUD/USD pair holds ground after China's Services Purchasing Managers' Index (PMI) rose to 52.3 in January from 52.0 in December. This figure came in stronger than the expectations of 51.8. China is a key trading partner of Australia, so any changes in the Chinese economy could impact the AUD.
The AUD rose after the release of seasonally adjusted S&P Global Purchasing Managers’ Index (PMI) data, which showed Australia’s Composite PMI rising to 55.7 in January from 51.0 in December. The expansion was the strongest in 45 months. Meanwhile, Services PMI climbed to 56.3 from 51.1, marking its highest level since February 2022. The reading beat the flash estimate of 56.0 and remained above the 50.0 threshold, extending the run of expanding services activity to two years.
The Reserve Bank of Australia (RBA) raised the Official Cash Rate (OCR) by 25 basis points (bps) to 3.85% on Tuesday, citing stronger-than-expected growth and a sticky inflation outlook. As the tightening cycle begins, markets have lifted the probability of a May hike to 80% and now price in roughly 40 bps of further tightening over the rest of the year.
RBA Governor Michele Bullock said during the post-meeting press conference that inflation pressures remain too strong, warning it will take longer to return to target and is no longer acceptable. She stressed the board will stay data-dependent and avoid forward guidance.
US Dollar moves little after registering recent losses
- The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, remains subdued for the second successive session and is trading near 97.40 at the time of writing. Markets will focus later in the day on the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI), which is expected to ease to 53.5 in January from 54.4 in December.
- The Bureau of Labor Statistics (BLS) will not publish the January employment report on Friday as scheduled because of the partial government shutdown that began last weekend. The shutdown ended late Tuesday after US President Donald Trump signed a funding deal negotiated with Senate Democrats, despite ongoing tensions over his immigration crackdown.
- Monday’s data showed an unexpected rebound in US factory activity, underscoring economic resilience, as the Institute for Supply Management's (ISM) Manufacturing Purchasing Managers' Index (PMI) rose to 52.6 from 47.9 in December, beating market expectations of 48.5.
- US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve (Fed) Chair. Markets interpreted Warsh’s appointment as signaling a more disciplined and cautious approach to monetary easing.
- The US Dollar gained traction as risk sentiment improved after the US Senate reached an agreement to advance a government funding package, thereby averting a shutdown, according to Politico.
- US producer-side inflation firmed, moving further away from the Federal Reserve’s 2% target and reinforcing the central bank’s policy stance. US PPI inflation holds steady at 3.0% year-over-year (YoY) in December, unchanged from November and above expectations for a moderation to 2.7%. Core PPI, excluding food and energy, accelerated to 3.3% YoY from 3.0%, defying forecasts for a decline to 2.9% and highlighting persistent upstream price pressures.
- St. Louis Fed President Alberto Musalem said additional rate cuts are not warranted at this stage, characterizing the current 3.50%–3.75% policy rate range as broadly neutral. Similarly, Atlanta Fed President Raphael Bostic urged patience, arguing that monetary policy should remain modestly restrictive.
- Australia’s RBA Trimmed Mean inflation increased to 0.2% month-over-month (MoM) and 3.3% year-over-year (YoY). The monthly CPI rose 1.0% in December, up from 0% previously and above the 0.7% forecast.
- Australia’s export prices rose 3.2% quarter-on-quarter (QoQ) in Q4 2025, rebounding from a 0.9% fall in Q3 and marking the first increase in three quarters, as well as the strongest gain in a year. Meanwhile, import prices climbed 0.9%, beating expectations for a 0.2% decline and reversing a 0.4% drop in Q3.
- China's RatingDog Manufacturing Purchasing Managers' Index (PMI) rose to 50.3 in January from 50.1 in December. This figure came in line with the expectations. The latest reading indicated a slight expansion in factory activity, but the fastest growth since last October.
- Australia’s TD-MI Inflation Gauge rose 3.6% year-over-year (YoY) in January, up from 3.5% previously. The Monthly Inflation Gauge increased by 0.2%, slowing sharply from December’s two-year high of 1% and marking the weakest pace since August.
- ANZ Job Advertisements jumped 4.4% month-over-month (MoM) in December 2025, rebounding from a revised 0.8% decline and posting the first increase since July. The rise was also the strongest monthly gain since February 2022, signaling renewed momentum in hiring toward year-end.
Australian Dollar rebounds toward three-year highs near 0.7100
The AUD/USD pair is trading around 0.7030 on Wednesday. Daily chart analysis indicates that the pair remains within the ascending channel pattern, indicating a persistent bullish bias. The 14-day Relative Strength Index (RSI) is at 73.30; it typically signals bullish momentum, but stretching momentum.
The AUD/USD pair rebounded toward 0.7094, the highest level since February 2023, which was recorded on January 29. A break above this level would support the pair to test the upper ascending channel boundary around 0.7210. On the downside, the primary support lies at the nine-day Exponential Moving Average (EMA) of 0.6964, aligned with the lower boundary of the channel. Further declines would expose the 50-day EMA at 0.6759 support.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.11% | -0.14% | 0.39% | 0.00% | -0.07% | 0.29% | -0.06% | |
| EUR | 0.11% | -0.03% | 0.50% | 0.11% | 0.04% | 0.42% | 0.05% | |
| GBP | 0.14% | 0.03% | 0.51% | 0.14% | 0.07% | 0.44% | 0.08% | |
| JPY | -0.39% | -0.50% | -0.51% | -0.37% | -0.44% | -0.08% | -0.43% | |
| CAD | -0.00% | -0.11% | -0.14% | 0.37% | -0.07% | 0.30% | -0.06% | |
| AUD | 0.07% | -0.04% | -0.07% | 0.44% | 0.07% | 0.38% | 0.01% | |
| NZD | -0.29% | -0.42% | -0.44% | 0.08% | -0.30% | -0.38% | -0.36% | |
| CHF | 0.06% | -0.05% | -0.08% | 0.43% | 0.06% | -0.01% | 0.36% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
- The Indian Rupee opens firmly against the US Dollar, continuing strength from US-India trade deal confirmation.
- FIIs turned out to be net buyers in the Indian stock market on US-India trade deal euphoria.
- Investors await US data and the RBI monetary policy announcement.
The Indian Rupee (INR) opens on a firm note against the US Dollar (USD) on Tuesday, with the USD/INR pair holding onto losses near 90.55.
The near-term trend of the pair seems fragile as the broader outlook of the Indian Rupee has improved, following the trade deal announcement between the United States (US) and India by President Donald Trump. The acknowledgement of the long-awaited US-India trade deal appears to have improved sentiment of foreign investors toward the Indian equity market.
On Tuesday, Foreign Institutional Investors (FIIs) turned out to be net buyers and purchased stocks worth Rs. 5,236.28 crore, the highest inflow of overseas funds seen since October 28, 2025, Economic Times (ET) reported.
While market participants were cautious about whether the Indian government has sacrificed its “non-compromise” policy on critical sectors, such as agriculture and dairy; Commerce Minister Piyush Goyal has clarified that these sectors were protected from international exposure during negotiations.
Going forward, investors will focus on the Reserve Bank of India’s (RBI) monetary policy announcement on Friday, in which it is expected to leave the Repo Rate unchanged at 5.25%.
Daily Digest Market Movers: US ADP Employment and ISM Services PMI come into spotlight
- The US Dollar trades broadly calm against its other currency peers ahead of the release of US ADP Employment Change and the ISM Services Purchasing Managers’ Index (PMI) data for January, which will be published during the North American session.
- At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades almost flat around 97.45. Still, the DXY is close to its weekly high of 97.73 posted on Monday.
- The US ADP employment report is expected to show that private employers added 48K fresh workers, slightly higher than 41K in December. A slight improvement in the job data is unlikely to provide relief to Federal Reserve (Fed) officials, who have been expressing labor market concerns for months.
- The US ISM Services PMI is seen arriving at 53.5, lower than 54.4 in December, indicating that the service sector activity continued to advance but at a moderate pace.
- Upbeat US data would dampen market expectations for an interest rate cut by the Fed in the near term. Currently, traders seem confident that the Fed will leave interest rates unchanged in the range of 3.50%-3.75% in the March policy meeting, according to the CME FedWatch tool.
- Meanwhile, the US government partial shutdown has ended as House advanced bill to fund federal agencies on Tuesday.
- The US Dollar had a strong rally in the past few trading days, following president Trump nominated Kevin Warsh as new Fed Chairman. The event was positive for the US Dollar, but unfavorable for precious metals and US equities, given Warsh’s preference for a firmer US Dollar in his previous work at the Fed.
Technical Analysis: USD/INR stays below 20-day EMA
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In the daily chart, USD/INR trades at 90.5715. Price holds below the 20-day exponential moving average at 91.0466, which slopes lower and caps rebound attempts. The declining average keeps the near-term trend tilted lower. RSI at 44.82 (neutral) slips beneath the midline, confirming waning upside momentum.
A close back above the 20-day EMA would temper bearish pressure and could pave the way for stabilization. Failure to reclaim it, alongside an RSI that stays under 50 or drifts toward 40, would maintain downside risk and keep rallies vulnerable to supply. Momentum would improve only if RSI returns above 50 and price establishes acceptance over the average.
(The technical analysis of this story was written with the help of an AI tool.)
Indian Rupee FAQs
The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee.
The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference.
Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee.
Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.
- Gold scales higher for the second straight day as renewed US-Iran tensions boost safe-haven demand.
- Fed rate cut bets keep the USD bulls on the defensive and also benefit the non-yielding yellow metal.
- Traders now look forward to the US ADP report and ISM Services PMI to grab short-term opportunities.
Gold (XAU/USD) attracts follow-through buying for the second consecutive day and surges past the $5,000 psychological mark during the Asian session on Wednesday amid the global flight to safety. Concerns over rising tensions between the US and Iran resurfaced following overnight reports that the US shot down an Iranian drone in the Arabian Sea. This forces investors to take refuge in traditional safe-haven assets, which, in turn, is seen as underpinning the precious metal.
The strong move up is further aided by prospects for lower US interest rates, which keep a lid on the recent US Dollar (USD) recovery from a four-year low and turn out to be another factor benefiting the non-yielding Gold. With the latest leg up, the XAU/USD pair has now recovered over $650 from the $4,400 neighborhood, or a nearly four-week low, touched on Monday. Traders now look forward to the US ADP report and the US ISM Services PMI for a fresh impetus.
Daily Digest Market Movers: Gold attracts safe-haven flows amid geopolitical risks as Fed rate cut bets undermine USD
- A US Central Command spokesman said on Monday that a US Navy fighter jet shot down an Iranian drone in self-defense after it moved toward the aircraft carrier USS Abraham Lincoln in the Arabian Sea. This undermines the optimism over the US-Iran nuclear talks later this week on Friday and assists the safe-haven Gold to register its biggest daily rise since November 2008.
- US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair fueled speculations that the central bank will be less dovish than expected. Traders, however, are still pricing in the possibility of two more rate cuts by the Fed this year, which keeps the US Dollar bulls on the defensive and benefits the non-yielding bullion for the second consecutive day.
- Meanwhile, Fed Governor Stephen Miran said on Tuesday that the underlying inflation is not a problem and that the US central bank needs to cut rates by about a percentage point this year. Separately, Richmond Fed President Thomas Barkin noted that inflation remains above target, but further progress is expected, and the economy remains remarkably resilient.
- Trump on Tuesday signed a spending deal into law that restores lapsed funding for defense, healthcare, labor, education, housing, and other agencies, and temporarily extends funding for the Department of Homeland Security until February 13. This
- This ends a partial US government shutdown and gives lawmakers time to negotiate potential limits on his immigration crackdown.
- The closely watched US Nonfarm Payrolls report for January will not be released this Friday. However, Wednesday's release of the US ADP report on private-sector employment should offer a fresh insight into the health of the labor market. Apart from this, the US ISM Services PMI might influence the USD demand and provide some impetus to the XAU/USD pair.
Gold bulls now await sustained strength above 50-SMA on H4 before positioning for further gains
An intraday breakout through the 50% retracement level of the recent sharp corrective decline from the $5,600 neighborhood, or the all-time peak, could be seen as a fresh trigger for bullish traders. Some follow-through buying beyond the 50-period Simple Moving Average (SMA) would validate the constructive outlook and allow the Gold price to appreciate further. The Moving Average Convergence Divergence (MACD) line stands above the Signal line and in positive territory, with a widening positive histogram that suggests strengthening bullish momentum. The Relative Strength Index (RSI) prints 55.83 (neutral) and edges higher, aligning with an improving tone.
Bias leans mildly higher as the 50-period SMA’s nascent upturn supports dips and price action builds above it. Momentum improves, with MACD remaining positive and the histogram expanding, while the RSI holding above 50 reinforces a recovery stance; however, overhead Fibonacci resistance tempers follow-through. A sustained close beyond that barrier would open further upside, whereas a drop back below the moving average would undermine the bounce and shift focus back to recently reclaimed retracement territory.
(The technical analysis of this story was written with the help of an AI tool.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Gold prices rose in India on Wednesday, according to data compiled by FXStreet.
The price for Gold stood at 14,748.40 Indian Rupees (INR) per gram, up compared with the INR 14,392.14 it cost on Tuesday.
The price for Gold increased to INR 172,022.50 per tola from INR 167,867.10 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 14,748.40 |
10 Grams | 147,480.10 |
Tola | 172,022.50 |
Troy Ounce | 458,730.90 |
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.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
- GBP/USD may face initial resistance at 1.3869, its highest level since September 2021.
- The 14-day Relative Strength Index holds at 61.75, above mid-line and below overbought territory.
- Immediate support is located at the nine-day EMA near 1.3678.
GBP/USD steadies after registering modest gains in the previous session, trading around 1.3700 during the Asian hours on Wednesday. The technical analysis of the daily chart points to a potential bearish reversal as the range narrows, indicating waning buyer momentum within a rising wedge pattern.
The nine-day Exponential Moving Average (EMA) at 1.3678 rises above the 50-day EMA at 1.3493, with price holding above both. Both averages slope higher, reinforcing trend strength. The momentum indicator 14-day Relative Strength Index (RSI) at 61.75 stays above the 50 mid-line without overbought readings, confirming bullish momentum.
The GBP/USD pair may find primary resistance at 1.3869, the highest since September 2021, reached on January 27, followed by the upper boundary of the rising wedge around 1.4010. A break above the wedge could open a fresh leg higher toward 1.4248, the highest since April 2018.
The immediate support is seen at the nine-day EMA of 1.3678, aligned with the lower rising wedge boundary. A break below the wedge would cause the emergence of a bearish bias and expose the 50-day EMA support at 1.3493, followed by the support reversal zone around 1.3350.
(The technical analysis of this story was written with the help of an AI tool.)
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
- Silver price jumps to near $87.60 in Wednesday’s Asian session.
- Shifting expectations for the Fed chairman might cap the upside for Silver.
- Traders seek safe-haven assets after reports that the US shot down an Iranian drone approaching an aircraft carrier.
Silver price (XAG/USD) climbs to around $87.60 during the Asian trading hours on Wednesday. The white metal rebounds after facing a historic correction last week as dip-buyers enter the market.
US President Donald Trump on Friday nominated Kevin Warsh to succeed Jerome Powell as the next Chairman of the US Federal Reserve (Fed). Warsh is expected to take over when Powell's term expires in May. Expectations that Trump’s pick to head the US central bank would favor maintaining elevated interest rates to curb inflation could lift the US Dollar (USD) broadly and drag the USD-denominated commodity price.
The sell-off in precious metals is pressured by the Chicago Mercantile Exchange Group (CME) margin hikes. The CME Group over the weekend raised margin requirements for gold and silver, forcing many leveraged traders to sell their positions immediately to cover costs.
On the other hand, traders seek safe-haven assets amid geopolitical risks and economic uncertainty, which could boost the Silver price. Reuters reported on Tuesday that the US military shot down an Iranian drone that "aggressively" approached the Abraham Lincoln aircraft carrier in the Arabian Sea.
Iran asked that negotiations with the US this week be held in Oman rather than Turkey and that the scope be limited to two-way conversations on the nuclear issue only. Trump warned that with US warships heading toward Iran, "bad things" would probably happen if a deal could not be reached.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
- USD/CAD holds steady as the commodity-linked Canadian Dollar struggles amid lower Oil prices.
- WTI may extend gains as geopolitical tensions rose after the US downed an Iranian drone near a carrier.
- Traders await ISM Services PMI, seen easing to 53.5 in January from 54.4.
USD/CAD moves little after registering modest losses in the previous session, trading around 1.3640 during the Asian hours on Wednesday. The pair inches higher as the commodity-linked Canadian Dollar (CAD) struggles amid lower Oil prices, reflecting Canada’s role as the largest crude exporter to the United States (US).
West Texas Intermediate (WTI) Oil price trades lower near $63.50 per barrel at the time of writing. However, Oil prices may build on previous gains as geopolitical tensions resurfaced after the US downed an Iranian drone near a US aircraft carrier in the Arabian Sea. However, President Trump said diplomatic channels remain open, with the White House confirming US-Iran talks are still scheduled for Friday.
Markets will focus later in the day on the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI), which is expected to ease to 53.5 in January from 54.4 in December.
The Bureau of Labor Statistics (BLS) will not publish the January employment report on Friday as scheduled because of the partial government shutdown that began last weekend. The shutdown ended late Tuesday after US President Donald Trump signed a funding deal negotiated with Senate Democrats, despite ongoing tensions over his immigration crackdown.
The US Dollar (USD) could gain support as expectations shift around Federal Reserve (Fed) leadership following Trump’s nomination of former Fed Governor Kevin Warsh as the next Fed Chair. Markets anticipate a slower pace of rate cuts and greater emphasis on balance sheet reduction under Warsh.
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is Canada’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in Canada’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
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