Forex News
- USD/CAD drifts lower to near 1.4190 in Friday’s early European session.
- July Fed hike odds fall to roughly 28.9% from 34.2%, CME FedWatch showed.
- BoC policymakers agreed to keep monetary policy nimble, minutes showed.
The USD/CAD pair declines to around 1.4190 during the early European trading hours on Friday. The US Dollar (USD) softens against the Canadian Dollar (CAD) as the US Personal Consumption Expenditures (PCE) Price Index inflation data eases US rate hike expectations. The Michigan Consumer Sentiment Index report will be the highlight later on Friday.
The headline PCE surged 4.1% YoY in May, marking the first reading above 4.0% since April 2023, but it matched expectations, the US Bureau of Economic Analysis (BEA) reported on Thursday. On a monthly basis, the PCE increased 0.4%, below the market consensus of 0.5%.
Analysts believe that with oil prices falling to pre-war levels on Thursday after the US and Iran signed a preliminary peace deal, inflation likely peaked last month or is close to doing so.
Financial markets have priced in nearly a 28.9% probability that the Fed will raise rates at the central bank's July meeting, down from 34.2% in the prior session, according to the CME FedWatch tool.
The Bank of Canada (BoC) is expected to hold interest rates at current levels for the remainder of this year. Also, minutes from the BoC’s policy meeting did little to reverse a wider gap between US and Canadian interest rates. This, in turn, could cap the upside for the Loonie.
Minutes of the meeting showed that the governing council agreed to keep its monetary policy nimble to respond to new US trade restrictions, the impact of energy prices, or both playing out at the same time. Traders expect 17 basis points (bps) of tightening from the Canadian central bank by December, down from about 60 bps last month, according to Reuters.
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.
- NZD/USD may test the primary support at the descending channel's lower boundary around 0.5620.
- The 14-day Relative Strength Index at 28 signals oversold conditions.
- The initial resistance lies at the nine-day EMA of 0.5703.
NZD/USD continues its losing streak that began on June 17, trading around 0.5650 during the Asian hours on Friday. Technical analysis of the daily chart suggests the spot price is moving downwards within the descending channel, reflecting a persistent bearish bias.
The NZD/USD pair is keeping a bearish near-term bias as spot holds beneath both the nine-period Exponential Moving Average (EMA) at 0.5703 and the 50-period EMA at 0.5820. The alignment of short and medium EMAs above price suggests continued downside pressure, while the 14-day Relative Strength Index (RSI) at 28 remains in oversold territory, hinting that the latest slide is stretched but not yet showing a clear recovery signal.
The NZD/USD pair may find initial support at the lower boundary of the descending channel around 0.5620, followed by the 14-month low of 0.5580, which was recorded in November 2025. Further declines below this confluence support zone would strengthen the bearish bias and lead the pair to test the 0.5485, the lowest since March 2020.
On the upside, the NZD/USD pair may rise toward the primary barrier at the nine-day EMA of 0.5703, followed by the upper boundary of the descending channel around 0.5760. Further resistance lies at the 50-day EMA of 0.5819.
(The technical analysis of this story was written with the help of an AI tool.)
New Zealand Dollar Price Today
The table below shows the percentage change of New Zealand Dollar (NZD) against listed major currencies today. New Zealand Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.10% | -0.15% | -0.11% | 0.21% | 0.03% | -0.18% | |
| EUR | 0.08% | -0.03% | -0.04% | -0.01% | 0.29% | 0.08% | -0.09% | |
| GBP | 0.10% | 0.03% | -0.02% | 0.00% | 0.33% | 0.13% | -0.06% | |
| JPY | 0.15% | 0.04% | 0.02% | 0.03% | 0.34% | 0.14% | -0.04% | |
| CAD | 0.11% | 0.00% | -0.00% | -0.03% | 0.32% | 0.11% | -0.09% | |
| AUD | -0.21% | -0.29% | -0.33% | -0.34% | -0.32% | -0.19% | -0.39% | |
| NZD | -0.03% | -0.08% | -0.13% | -0.14% | -0.11% | 0.19% | -0.19% | |
| CHF | 0.18% | 0.09% | 0.06% | 0.04% | 0.09% | 0.39% | 0.19% |
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 New Zealand Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent NZD (base)/USD (quote).
- GBP/USD posts modest gains around 1.3200 in Friday’s early European session.
- Traders await the outcome of who will take over as the next finance minister under Andy Burnham, lifting the British Pound.
- US PCE inflation data eases US rate hike expectations.
The GBP/USD pair trades with mild gains near 1.3200 during the early European session on Friday. The British Pound (GBP) strengthens against the US Dollar (USD) as markets focus on who might become finance minister under Andy Burnham, and the latest US inflation data has softened expectations for US rate hikes.
UK Finance Minister Rachel Reeves is expected to be replaced under a Burnham-led administration. Traders focus on who might become finance minister under Andy Burnham, the likely successor to Keir Starmer as Prime Minister. "The obstacles to a Burnham coronation are slowly being cleared, offering sterling support at the margin," said Nick Rees, head of macro analysis at Monex Europe.
Rees said former health secretary Wes Streeting's emergence as the favorite to become her successor, as reported by some media outlets, was likely to support sterling. "That said, we are still in the honeymoon period as far as Burnham is concerned, and economic realities remain challenging," he added.
The US Bureau of Economic Analysis (BEA) revealed on Thursday that the US Personal Consumption Expenditures (PCE) Price Index climbed 4.1% YoY in May, compared to 3.3% in April. The annual rate accelerated well above the Fed’s 2% target.
The core PCE, the Fed’s preferred inflation gauge, rose 3.4% YoY in May, versus 3.3% prior, in line with expectations. This figure registered the highest since October 2023. Both readings came in line with the market expectations.
Analysts believe that with oil prices falling to pre-war levels on Thursday after the US and Iran signed a preliminary peace deal, inflation likely peaked last month or is close to doing so.
Markets are now pricing in nearly a 28.9% chance for a hike of at least 25 basis points (bps) at the central bank's July meeting, down from 34.2% in the prior session, according to the CME FedWatch tool. For the September meeting, expectations for a hike dipped to 60.1% from 65.7% on Wednesday.
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.
- WTI declines as surging Middle Eastern oil supply overshadows geopolitical anxieties.
- QatarEnergy issued its first July–August crude tender since the US–Iran conflict began.
- Oil prices initially spiked after a suspected projectile attack on a cargo vessel off Oman.
West Texas Intermediate (WTI) depreciates after registering over 2% gains in the previous day, trading around $70.30 per barrel during the Asian hours on Friday. Crude oil prices ground lower as a massive surge in Middle Eastern supply ultimately overshadowed the geopolitical anxieties sparked by a fresh tanker attack near the Strait of Hormuz.
Crude oil prices lost ground as investors realized that actual shipping traffic through the strait remained highly active and that a wave of fresh crude was hitting the market. In a highly anticipated move, QatarEnergy issued a tender offering al-Shaheen, Qatar Marine, and Qatar Land crude for July-to-August loading, marking its first such move since the US-Iran conflict began. According to tender documents seen by Reuters, the producer is giving buyers the flexibility to load or lift supplies via ship-to-ship transfers between Fujairah and Sohar, adding significant volumes to the market alongside recent July-loading tenders from Iraq's SOMO and Kuwait Petroleum Corp.
Further compounding the supply surge, refining giant Saudi Aramco officially resumed oil loading at its Ras Tanura terminal in the Gulf following a nearly four-month halt. Tracking data from LSEG showed two Very Large Crude Carriers, each capable of carrying 2 million barrels of oil, actively loading at the terminal while a third waited nearby. Combined with Abu Dhabi National Oil Co selling at least 48 million barrels of crude across three separate tenders this month, this sweeping resumption of regional export activity ultimately convinced traders that the physical supply of oil remains more than secure despite the ongoing military risks.
Oil prices had initially spiked during early Asian trading hours following a suspected projectile attack on a cargo vessel off the coast of Oman, an incident that abruptly halted United Nations (US) evacuation efforts in the vital chokepoint and reignited deep fears over global energy security. The friction intensified after the market closed when US officials reported that Iranian forces had fired on the cargo ship, prompting Iranian authorities to issue a stark warning that they would no longer guarantee the safety of any vessels traveling outside designated shipping lanes.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- AUD/USD meets with a fresh supply on Friday, though the RBA’s hawkish tilt limits losses.
- Hormuz risks and Fed rate hike bets revive USD demand, exerting pressure on spot prices.
- Traders now look to the US Consumer Sentiment Index and Fedspeak for a fresh impetus.
The AUD/USD pair attracts fresh sellers following the previous day's modest gains and drops to a fresh low since early April during the Asian session on Friday. Spot prices, however, recover a few pips in the last hour and currently trade just below the 0.6900 mark, still down over 0.25% for the day.
According to the third and final reading published by the US Bureau of Economic Analysis on Thursday, the economy grew at an annualized rate of 2.1% in the first quarter of 2026 compared to the second estimate of 1.6% rise. Adding to this, the US Personal Consumption Expenditures (PCE) Price Index highlighted persistent inflationary pressures, keeping an interest rate hike by the US Federal Reserve (Fed) this year firmly on the table. Apart from this, the cautious market mood helps the safe-haven US Dollar (USD) stall its corrective pullback from the highest level since May 2025, touched on Thursday, and exerts downward pressure on the AUD/USD pair.
Reports suggested that Iran’s Islamic Revolutionary Guard Corps (IRGC) attacked a Singapore-flagged cargo ship in the Strait of Hormuz. The latest development reignites worries about the sustainability of the preliminary US-Iran peace deal. Apart from this, the recent tech-driven selloff in the equity markets has triggered global risk aversion, which is seen as another factor behind the Greenback's relative outperformance against the perceived riskier Australian Dollar (AUD). That said, expectations that the Reserve Bank of Australia (RBA) will stick to its hawkish stance hold back bearish traders from placing aggressive bets around the AUD/USD pair.
Traders now look forward to the release of the revived University of Michigan US Consumer Sentiment Index, which, along with Fedspeak, might influence the USD price dynamics. The focus will then shift to RBA Governor Michele Bullock's speech on Sunday, which should provide a fresh impetus to the AUD/USD pair at the start of a new week. Nevertheless, spot prices remain on track to register heavy weekly losses, also marking the second straight week of a negative move.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
- EUR/JPY is bearish, trading below its nine-period and 50-period EMAs.
- The 14-day Relative Strength Index at 38 signals continuing downside momentum, not an oversold reversal.
- Spot above 183.81 VWAP means buyers control the EUR/JPY cross in intraday trading.
EUR/JPY inches lower after registering minor gains in the previous day, trading around 183.90 during the Asian hours on Friday. The currency cross maintains a bearish near-term bias as it holds below both the nine-period and 50-period Exponential Moving Averages (EMAs) at 184.38 and 184.91, respectively.
The EUR/JPY cross is remaining within the symmetrical triangle, suggesting market indecision and an impending breakout as energy builds, while the 14-day Relative Strength Index (RSI) has eased toward 38, hinting at lingering downside pressure rather than a decisive oversold reversal.
However, the session Volume-Weighted Average Price (VWAP) represents the true average price paid for a stock or asset throughout the day, weighted by volume. Because the spot price is higher than the VWAP of 183.81, it means buyers are firmly in control and are willing to pay a premium to acquire the EUR/JPY cross.
In context with the symmetrical triangle, volatility is shrinking. Think of it like a compressed spring; the market is resting and storing energy for a major breakout. Because the price is trapped between two converging trendlines, momentum indicators like VWAP lose their directional edge until a breakout occurs.
The initial support is aligned at the lower boundary of the symmetrical triangle around 183.40. Further declines would expose the four-month low of 181.87, recorded on March 16, followed by the six-month low of 180.81.
On the upside, primary resistance is seen at the nine-period EMA at 184.38, followed by the 50-period EMA at 184.91; a sustained break above these levels would soften the bearish tone and expose the upper boundary of the symmetrical triangle around 186.00. Further advances would support the EUR/JPY cross to test the all-time high of 187.95.
(The technical analysis of this story was written with the help of an AI tool.)
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | -0.05% | -0.11% | -0.06% | 0.33% | 0.14% | -0.17% | |
| EUR | 0.03% | -0.03% | -0.06% | -0.01% | 0.36% | 0.14% | -0.13% | |
| GBP | 0.05% | 0.03% | -0.04% | -0.01% | 0.39% | 0.19% | -0.11% | |
| JPY | 0.11% | 0.06% | 0.04% | 0.05% | 0.43% | 0.22% | -0.06% | |
| CAD | 0.06% | 0.00% | 0.00% | -0.05% | 0.39% | 0.16% | -0.13% | |
| AUD | -0.33% | -0.36% | -0.39% | -0.43% | -0.39% | -0.20% | -0.48% | |
| NZD | -0.14% | -0.14% | -0.19% | -0.22% | -0.16% | 0.20% | -0.29% | |
| CHF | 0.17% | 0.13% | 0.11% | 0.06% | 0.13% | 0.48% | 0.29% |
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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
- Silver price plunges to near $56.50 as Fed’s Williams warns of persistent inflationary pressures.
- The US core PCE inflation arrives higher at 3.4% YoY, as expected.
- The Fed is highly anticipated to deliver at least one interest rate hike this year.
Silver price (XAG/USD) is down 2.5% to near $56.50 during the Asian trading session on Friday. The white metal has been under pressure for the past few months as Middle East war-led elevated energy prices have pushed the United States (US) headline and core inflation, a scenario that encourages the Federal Reserve (Fed) to tighten monetary policy conditions, which bodes poorly for non-yielding assets, such as Silver.
The latest Consumer Price Index (CPI) report showed that the headline and the core inflation accelerated to 4.2% and 2.9% Year-on-Year (YoY) in May, respectively. The US headline inflation at 4.2% YoY is the highest level seen since April 2023.
On Thursday, the US core Personal Consumption Expenditure Price Index (PCE), which is the Fed’s preferred inflation gauge, also arrived higher at 3.4% YoY in May, as expected, from 3.3% in April.
New York Fed Bank President John Williams also said in a speech on Thursday that the monetary policy is “well-positioned” given high inflationary pressures. Williams stated that he expects “inflation to moderate to around 3.5% this year” and pushed back hopes of price pressures returning to the 2% target before 2028.
A significant price rise has prompted hopes of Fed interest rate hikes this year. According to the CME FedWatch tool, the odds of the Fed raising interest rates at least once this year are 81.7%, a sharp turnaround from the anticipation of two interest rate cuts before the Middle East war started.
Silver technical analysis
Bias: XAG/USD trades sharply lower at around $56.50, keeping a clear bearish near-term bias as price holds well beneath the 20-period exponential moving average (EMA) at $65.82. The metal has retreated sharply from prior highs, and the 20-day EMA now acts as an overhead cap that suggests rallies are likely to be sold while below this barrier.
Momentum: The Relative Strength Index (RSI) at 27.45 sits in oversold territory, hinting that while downside pressure dominates, the pace of the decline could slow and allow for intermittent corrective bounces.
Support: Looking down, the Silver price could slide towards the November 28 low at $53.35 if it extends its decline below the June 24 low at $55.63. A breakdown below $53.35 would expose the Silver price to the psychological level of $50.00.
Resistance: On the topside, the March 23 low at $61.01 is the key hurdle for Silver price bulls, followed by the 20-day EMA at $65.82.
(The technical analysis of this story was written with the help of an AI tool.)
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.
Gold prices fell in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 12,196.92 Indian Rupees (INR) per gram, down compared with the INR 12,257.33 it cost on Thursday.
The price for Gold decreased to INR 142,267.00 per tola from INR 142,967.10 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 12,196.92 |
10 Grams | 121,973.50 |
Tola | 142,267.00 |
Troy Ounce | 379,368.30 |
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.)
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