Forex News
DBS strategist Philip Wee argues that the US Dollar’s near-term haven support could pause unless US equities make fresh year lows. He notes that markets have stepped back from pushing the DXY Index above 100.5 after Fed Chair Jerome Powell pushed back on aggressive rate-hike bets, stressing anchored inflation expectations and reduced fears of a 1970s-style wage‑price spiral.
Haven status conditional on equity weakness
"US financial markets will likely turn cautious as the Good Friday long weekend approaches. No one can rule out the US equity market rebound in the past two days as a dead cat bounce."
"The situation is slightly different for the USD in the near term. The USD’s haven status can pause unless the S&P 500 plunges to a new year’s low."
"Markets abandoned pushing the DXY Index above the critical 100.5 level after Fed Chair Jerome Powell pushed back against Fed hike bets on higher pump prices, signalling that inflation expectations were anchored and that the Fed was not panicking about a 1970s-style wage-price spiral."
"Fed officials took Powell’s lead on the Iranian conflict, mirroring the wait-and-see approach adopted after the Liberation Day tariffs. Fed Governor Michael Barr warned that the Iranian conflict poses a double-edged sword on inflation and growth, the longer it persists."
"The Atlanta Fed GDPNow model also weakened the USD’s exceptionalism narrative by projecting a lower growth to 1.95% vs. 3% at the start of Operation Epic Fury a month ago. Friday’s US monthly jobs data will likely complement the factors that pulled the US Treasury 10Y yield down from its 7-8- month peak near 4.50%."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
- USD/CAD bounces up above 1.3900, drawing close to YTD highs at 1.3966.
- Investors' disappointment after Trump's speech has boosted the safe-haven US Dollar on Thursday.
- US macroeconomic data beat expectations on Wednesday, providing additional support to the USD.
The US Dollar (USD) is retracing Wednesday’s losses against the Canadian Dollar on Thursday, as investors resume the cautious trade witnessed in March, amid dwindling hopes of a de-escalation in Iran. The pair is trading above 1.3910 at the time of writing, after bouncing at the 1.3865 area on Wednesday, with the year-to-date high, at 1.3966, coming into view.
US President Donald Trump’s televised speech disappointed investors, who were hoping for an exit plan from the Iran war. The president failed to offer any specific deadline for the end of the war, reiterated previous claims of a sweeping US victory, and assured that the US Army will hit Iran “extremely hard” during the next two or three weeks. Nothing really new.
Trump also called for allies to “build the courage” to reopen the Strait of Hormuz, which has remained closed by Tehran since the war started on February 28, and has triggered a sharp appreciation in crude prices that is threatening to push the global economy into recession.
The market reacted with strong risk-aversion. Asian equity markets have dropped sharply, with European and Wall Street futures pointing to hefty losses. Crude prices have recovered the previous two days’ losses, and in FX markets, the safe-haven US Dollar prevails against its main peers.
On the macroeconomic front, US data released on Wednesday beat expectations. The ADP Employment Change showed a 62K increase in payrolls in March, beating expectations of a 40K rise. Retail Sales bounced up 0.6% in February, following a 0.1% decline in January, and the ISM Manufacturing Purchasing Managers’ Index (PMI) showed its strongest performance in nearly 4 years, at 52.7.
In Canada, on the other hand, the S&P Global Manufacturing PMI eased to 50 in March, a level indicating a stalling business activity, from 51 in February. These figures have boosted concerns about the negative economic impact of the Middle East war.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Commerzbank analysts Dr. Henry Hao and Moses Lim note that the Reserve Bank of India (RBI) has banned authorised dealers from offering non-deliverable INR derivative contracts to residents and non-residents, and from transacting FX derivatives with related parties. The move aims to curb speculative pressure on the Rupee (INR). Offshore 1‑month USD/INR NDF fell 0.6% to 93.59 after the directive, easing near-term intervention needs.
Rupee regulation tightens as RBI targets speculation
"The Reserve Bank of India (RBI) banned authorised dealers from offering non-deliverable derivative contracts to both residents and non-residents yesterday. Dealers are also prohibited from offering any FX derivatives contracts with related parties. However, banks may offer deliverable forwards to clients for hedging purposes, as long as these banks refrain from offsetting the transaction through an offshore position."
"RBI's recent tightening of regulations on INR derivatives aims to curb speculative trades that have weakened the INR. In the near-term, this could alleviate pressure for the RBI to intervene to stablise the INR."
"However, it is unlikely to stem the currency’s decline in the medium-term as importer dollar demand is expected to remain firm amid elevated global commodity prices. RBI have drawn USD30bn from the FX reserve in the first three weeks of March to defend the INR."
"In FX, the onshore market was closed on Tuesday and Wednesday. The offshore 1-month USD-INR NDF fell 0.6% to 93.59 yesterday. It was stable at market open but sharply fell overnight following the RBI’s directive."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Gulf nations are considering pipeline projects to bypass the Strait of Hormuz amid concerns over Iran's potential control of the strategic waterway, the Financial Times reported on Thursday.
Officials and industry executives said new pipelines may be the only option to reduce Gulf countries’ enduring vulnerability to disruption in the strait, even though such projects would be costly, politically complex and take years to finish.
Market reaction
At the time of writing, the West Texas Intermediate (WTI) is up 6.10% on the day at $99.96.
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 plummets to near 0.6870 as risk-off sentiment weighs heavily on the Australian Dollar.
- US President Trump warns that Washington will hit Iran extremely hard in the next two to three weeks.
- The revival of Middle East risks has improved the US Dollar’s safe-haven demand.
The AUD/USD pair is down 0.7% to near 0.6870 in the late Asian trading session on Thursday. The Aussie pair faces intense selling pressure as the Australian Dollar (AUD) underperforms due to a risk-off mood.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.48% | 0.60% | 0.37% | 0.28% | 0.76% | 0.80% | 0.58% | |
| EUR | -0.48% | 0.12% | -0.11% | -0.22% | 0.29% | 0.33% | 0.09% | |
| GBP | -0.60% | -0.12% | -0.23% | -0.32% | 0.16% | 0.23% | -0.04% | |
| JPY | -0.37% | 0.11% | 0.23% | -0.10% | 0.38% | 0.43% | 0.19% | |
| CAD | -0.28% | 0.22% | 0.32% | 0.10% | 0.48% | 0.52% | 0.28% | |
| AUD | -0.76% | -0.29% | -0.16% | -0.38% | -0.48% | 0.05% | -0.23% | |
| NZD | -0.80% | -0.33% | -0.23% | -0.43% | -0.52% | -0.05% | -0.25% | |
| CHF | -0.58% | -0.09% | 0.04% | -0.19% | -0.28% | 0.23% | 0.25% |
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).
As of writing, S&P 500 futures trade 1.25% lower, slightly below 6,500, reflecting weak demand for riskier assets.
Fresh threats from United States (US) President Donald Trump to intensify military attacks on Iran in the next two to three weeks have revived fears of a long-lasting Middle East war, which in turn has underpinned risk-off impulse again. “We are going to hit them extremely hard over the next two to three weeks, and bring them back to the stone ages,” Trump said.
Meanwhile, a fresh escalation in the Middle East war has improved the safe-haven demand of the US Dollar (USD). During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.5% to near 100.00.
On the macro front, investors await the US Nonfarm Payrolls (NFP) data for March, which will be released on Friday.
AUD/USD technical analysis
AUD/USD trades sharply lower at around 0.6870 at the press time. The pair holds below the descending 20-day Exponential Moving Average (EMA), which is around 0.6970, capping rebounds and defining a near-term bearish bias after the late-March peak. Price action has shifted into a sequence of lower highs and lower closes, while the 14-day Relative Strength Index (RSI) is struggling to hold above 40.00, strengthening the bearish bias.
Initial resistance aligns with the 20-day EMA near 0.6970, and a daily close above this barrier would be needed to ease immediate selling pressure and open the way toward 0.7050. On the downside, immediate support emerges at Monday's low of 0.6833, where a break would extend the decline and expose the 0.6750 area as the next bearish target.
(The technical analysis of this story was written with the help of an AI tool.)
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.
- USD/CHF climbs to near 0.7985 in Thursday’s early European session.
- Trump said the US’s war objectives are nearing completion and threatening to hit Iran hard over the next two to three weeks.
- The Swiss March CPI inflation data will be released on Thursday.
The USD/CHF pair jumps to around 0.7985 during the early European session on Thursday. The Greenback strengthens against the Swiss Franc (CHF) following an address to the nation by US President Donald Trump. Traders will keep an eye on the Swiss March Consumer Price Index (CPI) data, which is due later on Thursday.
Trump said during a primetime televised speech from the White House on Thursday that his core "objectives are nearing completion" in Iran and expected another two or three weeks of involvement. Nonetheless, he signaled that the US is prepared to intensify its military response in the remaining time period and threatened to bring Iran “back to the stone ages.” Persistent tensions between the US and Iran could underpin the US Dollar (USD) in the near term.
The Swiss Federal Statistical Office will publish its inflation data on Thursday. The monthly and annual CPI are expected to show a rise of 0.5% for March. The persistent low inflation has led the Swiss National Bank (SNB) to maintain a cautious stance.
Traders will shift their attention to the US jobs data on Friday. Markets expect the Nonfarm Payrolls (NFP) to show 60,000 in March, while the Unemployment Rate is projected to hold steady at 4.4% during the same period. If the reports show weaker-than-expected outcomes, this could undermine the USD against the CHF.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
- AUD/JPY falls as the Australian Dollar weakens after Trump’s remarks showed no clear Middle East de-escalation.
- Australia’s Trade Surplus widened to AUD 5,686 million from a revised AUD 2,258 million previously.
- New BoJ board member Toichiro Asada signaled a cautious, data-dependent stance in his first public remarks.
AUD/JPY loses ground after two days of gains, trading around 109.60 during the Asian hours on Thursday. The currency cross depreciates as the Australian Dollar (AUD) weakens after US President Donald Trump’s latest address showed no clear Middle East de-escalation, keeping geopolitical risk elevated.
The AUD remains subdued despite Australia’s Trade Surplus more than doubling in February to its highest level in seven months, supported by strong gains in gold and agricultural exports, while imports of gold and data processing equipment declined.
Australia’s Trade Surplus widened to AUD 5,686 million in February from a downwardly revised AUD 2,258 million previously, well above expectations of AUD 2,500 million and marking the largest surplus since July 2025. Meanwhile, Exports rose 4.9% MoM to a four-month high, recovering from a revised 1.6% decline, while imports fell 3.2% MoM to a seven-month low, reversing a revised 1.1% increase.
The downside of the AUD/JPY cross may be limited as the Japanese Yen (JPY) remains under pressure from rising oil prices, given Japan’s heavy reliance on Middle East crude imports. Trump signaled the US aims to conclude the conflict within two to three weeks, while warning that military operations could still intensify.
Meanwhile, new Bank of Japan (BoJ) board member Toichiro Asada adopted a cautious, data-dependent stance in his first remarks. Asada joins the nine-member board ahead of the April 27–28 policy meeting.
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.
- WTI gains strong positive traction after Trump threatens to target Iran’s energy infrastructure.
- The mixed technical setup warrants some caution before positioning for any meaningful gains.
- A sustained move beyond the recent swing high will be seen as a fresh trigger for bullish traders.
West Texas Intermediate (WTI) Crude Oil prices caught aggressive bids on Thursday and rallied closer to the 100.00 psychological mark during the Asian session following US President Donald Trump's Iran war update.
Addressing the nation, Trump said that Iran will be hit extremely hard over the next two to three weeks and will be brought to the Stone Age if no deal is reached. Trump further added that Iranian energy infrastructure remains a possible target, which, in turn, is seen as a key factor behind the sharp intraday rise in Crude Oil prices.
From a technical perspective, the black liquid once again showed resilience near the 100-period Exponential Moving Average (SMA) on the 4-hour chart. The subsequent move up beyond the $100.00/barrier mark will be seen as a fresh trigger for bullish traders and pave the way for a further appreciating move for Crude Oil prices.
Meanwhile, the momentum has weakened as the Moving Average Convergence Divergence (MACD) indicator crosses below the signal line and slips under the zero line, while its negative histogram expands, signaling strengthening downside pressure after an extended advance. Moreover, the Relative Strength Index holds around 58, off prior overbought readings, which aligns with a normalization of momentum rather than outright capitulation.
In the meantime, immediate resistance emerges at $100.80, the latest reaction high before the current pullback, followed by the $102.70 peak that guards the recent top near $103. Above this, a break would open the way toward the $105.00 psychological area. That said, the failure to sustain above the recent $102–103 area might shift the bias in favor of bearish traders and drag Crude Oil prices to the $98.50 support, where recent lows align with the short-term consolidation base.
This is followed by $96.50 as the next bearish target. A deeper slide toward $94.50 would bring Crude Oil prices closer to the 100-period EMA on the 4-hour chart around $92.50, where buyers would be expected to defend the broader uptrend.
(The technical analysis of this story was written with the help of an AI tool.)
WTI 4-hour chart
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.
Gold prices fell in India on Thursday, according to data compiled by FXStreet.
The price for Gold stood at 14,163.99 Indian Rupees (INR) per gram, down compared with the INR 14,439.80 it cost on Wednesday.
The price for Gold decreased to INR 165,188.20 per tola from INR 168,415.90 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 14,163.99 |
10 Grams | 141,622.40 |
Tola | 165,188.20 |
Troy Ounce | 440,561.30 |
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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