Tag: Commodities

  • Gold price in Saudi Arabia: Rates on March 14

    Gold price in Saudi Arabia: Rates on March 14


    Gold prices remained broadly unchanged in Saudi Arabia on Friday, according to data compiled by FXStreet.

    The price for Gold stood at 360.25 Saudi Riyals (SAR) per gram, broadly stable compared with the SAR 360.42 it cost on Thursday.

    The price for Gold was broadly steady at SAR 4,201.91 per tola from SAR 4,203.82 per tola a day earlier.

    Unit measure Gold Price in SAR
    1 Gram 360.25
    10 Grams 3,602.53
    Tola 4,201.91
    Troy Ounce 11,205.10


    FXStreet calculates Gold prices in Saudi Arabia by adapting international prices (USD/SAR)
    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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  • Gold price in Saudi Arabia: Rates on March 10

    Gold price in Saudi Arabia: Rates on March 10


    Gold prices remained broadly unchanged in Saudi Arabia on Monday, according to data compiled by FXStreet.

    The price for Gold stood at 350.93 Saudi Riyals (SAR) per gram, broadly stable compared with the SAR 350.96 it cost on Friday.

    The price for Gold was broadly steady at SAR 4,093.09 per tola from SAR 4,093.57 per tola on friday.

    Unit measure Gold Price in SAR
    1 Gram 350.93
    10 Grams 3,509.22
    Tola 4,093.09
    Troy Ounce 10,915.24


    FXStreet calculates Gold prices in Saudi Arabia by adapting international prices (USD/SAR)
    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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  • BP fails to impress the market, as Fed rate cuts get priced back in

    BP fails to impress the market, as Fed rate cuts get priced back in


    BP has released what it calls its reset, with a renewed focus on oil and gas, reallocated capital and more cost cutting.  All of this is  aimed at driving shareholder returns in the long term. Unfortunately, this means reduced shareholder returns in the short term, which has triggered a small sell off in the stock price. The shareholder presentation will be delivered later today, but the company had to announce its plans to the LSE earlier this morning.

    The highlights from the ‘reset’ include reducing capex spend by $1-3bn compared to 2024 levels, with capex expected to be $15bn this year. The bulk of this spend will be on oil and gas investment projects, with $10bn currently allocated. Net zero/ transition investment has been dramatically slashed to $1.5bn – 2bn, down from the $5bn that was previously announced.

    Although there were no new job cuts announced, the plan includes cutting costs by $4-5bn, which is likely to include job losses in the future. These will likely hit non-oil and gas sectors and the energy transition  teams. As expected, the company will also make $20bn of divestments over the next 2 years, including Castrol oil, which will go some way to reducing the company’s net debt pile by $14-18bn by 2027.

    The company is optimistic for shareholder returns. The guidance included in the reset includes a distribution of 30-40% of operating cash flow over time to shareholders, through share buybacks and what it calls a ‘resilient dividend’ which could rise by up to 4% a year.

    The company is also setting a primary target of generating higher returns of more than 16% by 2027 . However, if the company hoped to get a head start on this, it hasn’t worked as yet. The stock has reversed earlier gains and is now down nearly 1% on Wednesday. This could be a reaction to the pledges on shareholder returns: 1, BP has cuts its current share buyback plan and 2, it has failed to give a concrete timeline for when it can deliver shareholder distributions of 30%-40% of free cash flow.

    Slashing shareholder returns in the near term could be a tough pill for investors to swallow

    In Q4, BP’s share buyback programme totaled $1.75bn, this has been slashed to $0.75-$1bn in Q1. The fact that the company is saying it wants to boost shareholder returns at some point in the future, at the same time as slashing its buybacks for this quarter could be hard for some investors to swallow.

    Added to that, for BP to meet its goals of increasing free cash flow and raising returns, it needs a Brent crude price of $70 per barrel or more, the Brent price is currently just above $73 per barrel, which may be too close for comfort, which may also curb investor enthusiasm for this stock.

    BP’s timing is wrong, yet again

    The problem for BP is that it flip flopped away from net zero and back to oil and gas too late. Added to this, the reset could not come at a worse time, when the price of oil is falling. The key event will not be the presentation from BP CEO Murray Auchincloss, but the judgement from Elliott Management, the activist investor who has built a near 5% stake in BP and is threatening to oust management if the company does not pivot back to oil and if performance does not improve. Its Elliott’s time scale that really matters for BP, and whether the investor will give the company time to see if its reset will work.

    For now, the reaction to the reset has been tepid, and we do not think that this alone can boost the share price or narrow the valuation gap with its peers.

    Chart: BP, Shell and S&P 500 Oil and Gas sector, normalized for five years

    Source: XTB and Bloomberg

    US economic weakness: Focus on rate cuts and FX so far, but could stocks be next?

    Elsewhere, there has been a turnaround in US Fed rate cut expectations.  As economic data has surprised on the downside, the market has priced in more rate cuts by the Fed by year end. The market now expects US interest rates to end the year at 3.78%, this is the lowest level of the year so far. The market is now expecting just over 2 rate cuts from the Fed this year. There is now a 50% chance of a rate cut in July, a month ago it was 42%. Added to this, there is also a 36% chance of two rate cuts by October, this was 26% a week ago. The increase in Fed rate cut expectations explains the weakness in the dollar. The USD is the weakest performer in the G10 FX space so far this year, especially vs. the yen.

    The weakness in the economic data has played out in the FX market and in the interest rate futures market. Although US stock markets have underperformed European markets, they are still higher on the year. If weakness in US economic data accelerates, stocks could be next to come under downward pressure. However, it’s worth remembering that most US blue chip and mid cap stocks have international exposure, and this could protect them from a domestic US economic downturn, which explains US stock market outperformance relative to other US assets.



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  • Gold price in India: Rates on February 25

    Gold price in India: Rates on February 25


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

    The price for Gold stood at 8,205.23 Indian Rupees (INR) per gram, down compared with the INR 8,238.38 it cost on Monday.

    The price for Gold decreased to INR 95,704.90 per tola from INR 96,090.80 per tola a day earlier.

    Unit measure Gold Price in INR
    1 Gram 8,205.23
    10 Grams 82,053.46
    Tola 95,704.90
    Troy Ounce 255,209.80

     

    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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  • XAG/USD trades with positive bias below mid-.00s

    XAG/USD trades with positive bias below mid-$32.00s


    • Silver attracts some buyers on Tuesday and snaps a two-day losing streak. 
    • Mixed technical indicators on the daily chart warrant some caution for bulls. 
    • Corrective slides could be seen as a buying opportunity and remain limited.

    Silver (XAG/USD) builds on the previous day’s modest bounce from the vicinity of the $32.00 mark, or a nearly one-week low, and gains some positive traction during the Asian session on Tuesday. The white metal, for now, seems to have snapped a two-day losing streak and currently trades just below mid-$32.00s, up 0.25% for the day. 

    From a technical perspective, the recent repeated failures to find acceptance above the $33.00 mark and the subsequent pullback warrant caution for bullish traders amid mixed oscillators on the daily chart. Hence, it will be prudent to wait for sustained strength and acceptance above the said handle before positioning for an extension of a well-established uptrend from sub-$29.00 levels, or the year-to-date low touched in January. 

    The XAG/USD might then aim to surpass the monthly swing high, around the $33.40 area touched on February 14, and climb further towards reclaiming the $34.00 mark. The momentum could extend further towards the $34.45 intermediate hurdle en route to the $35.00 neighborhood, or the multi-year peak touched in October. 

    On the flip side, the $32.10-$32.00 area now seems to have emerged as an immediate strong support ahead of the $31.75 region. Any further slide could be seen as a buying opportunity and help limit the downside for the XAG/USD near the $31.25 zone. The latter coincides with the 100-day Simple Moving Average (SMA) and should act as a key pivotal point. Hence, a convincing break below might shift the bias in favor of bearish traders. 

    The subsequent decline has the potential to drag the XAG/USD below the $31.00 round-figure mark, towards testing the the next relevant support near the $30.25 region, the $30.00 psychological mark, and the $29.55-$29.50 horizontal zone.

    Silver daily chart

    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.

     



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  • United States EIA Natural Gas Storage Change below forecasts (-188B) in February 14: Actual (-196B)



    United States EIA Natural Gas Storage Change below forecasts (-188B) in February 14: Actual (-196B)



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  • Trump’s tariff threats stress London gold market

    Trump’s tariff threats stress London gold market


    The London gold market is facing a mounting structural crisis.  

    Bullion banks that lend precious metals to producers and each other moved over 200 tonnes of gold to New York in January in response to US President Donald Trump’s tariff threats, leaving the London market desperately short of physical supplies.

    Dealers in London routinely borrow gold to fund customer positions. The cost of doing so, which has historically ranged from -20 basis points to +10bp, shot up to between 300bp for short

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  • WTI price bearish, according to FXStreet data

    WTI price bearish, according to FXStreet data


    West Texas Intermediate (WTI) Oil price falls on Thursday, according to FXStreet data. WTI trades at $70.55 per barrel, down from Wednesday’s close at $71.16. Brent Oil Exchange Rate (Brent crude) is also shedding ground, trading at $74.29 after its previous daily close at $74.89.

    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.

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



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  • XAG/USD trades with positive bias below mid-.00s

    XAG/USD remains steady near $32.50, three-month highs


    • Silver price holds ground near its three-month high of $32.56, recorded on February 5.
    • The upside of the Silver appears limited as the US Dollar gains ground amid rebounding US Treasury yields.
    • Traders await US Nonfarm Payrolls to gain fresh impetus regarding the Fed’s monetary policy direction.

    Silver price (XAG/USD) remains in positive territory for the fifth consecutive session, trading around $32.30 per troy ounce during Asian hours on Friday. The precious metal maintains its position near its three-month high of $32.56, recorded on February 5. Traders are awaiting key US labor market data, including Nonfarm Payrolls (NFP), which could influence the Federal Reserve’s (Fed) monetary policy direction.

    However, Silver’s upside appears limited as the US Dollar (USD) extends its recovery amid rebounding US Treasury yields. The US Dollar Index (DXY), which tracks the USD against six major currencies, has climbed near 107.70, while 2-year and 10-year US Treasury yields stand at 4.22% and 4.43%, respectively, at the time of writing.

    Safe-haven metals like Silver have gained ground amid heightened risk aversion due to global trade and economic uncertainties. However, trade negotiations between the United States (US) and China could temper this sentiment. US President Donald Trump and Chinese President Xi Jinping are set to discuss potential tariff rollbacks, which could ease market concerns and limit Silver’s upside.

    Diminished fears of a US-China trade war also reduce the risk of rising US inflation, reinforcing expectations of two Federal Reserve rate cuts this year. As a non-yielding asset, Silver benefits from a dovish stance by major central banks.

    Meanwhile, the Reserve Bank of India (RBI) is expected to announce a 25-basis-point rate cut on Friday. Last week, the European Central Bank (ECB) lowered its Deposit Facility Rate by 25 basis points to 2.75%, while the People’s Bank of China (PBoC) has signaled potential rate cuts. Additionally, the Bank of Canada (BoC) has paused its quantitative tightening, and Sweden’s Riksbank has cut interest rates.

    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.

     



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  • XAU/USD loses ground below ,700 amid firmer US Dollar

    XAU/USD loses ground below $2,700 amid firmer US Dollar


    • Gold price loses ground to around $2,690 in Monday’s early Asian session.
    • The upbeat US job report and surging USD weigh on the Gold price. 
    • Trump’s policy uncertainty and geopolitical risks might cap the downside for the precious metal.

    Gold price (XAU/USD) trades with mild losses near $2,690 on the stronger US Dollar (USD) broadly during the early Asian session on Monday. However, the safe-haven demand due to uncertainty surrounding the President-elect Donald Trump administration’s policies might help limit the Gold’s losses. 

    The stronger-than-expected US employment data on Friday reinforced expectations that the US Federal Reserve (Fed) might not cut interest rates as aggressively this year. This, in turn, weighs on the non-yielding asset. Traders expect the Fed to cut interest rates by just 30 basis points (bps) over the course of this year, compared with cuts worth about 45 bps before the NFP report. 

    On the other hand, Trump’s policy risks boosting the Gold price, a traditional safe-haven asset. “Gold is still acting resilient in the face of a much stronger-than-expected jobs report … One of the factors that’s been supporting gold is this uncertainty that we’ve seen going into the (U.S. presidential) inauguration,” said David Meger, director of metals trading at High Ridge Futures.

    Additionally, the escalating geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict might contribute to the precious metal downside. Israeli strikes continued throughout Gaza, including attacks near Gaza City, Nuseirat, and Bureij. Two attacks were also reported in the Houmin Valley in southern Lebanon, according to Lebanon’s National News Agency.

    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.

     



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  • Gold price in India: Rates on January 8


    Gold prices fell in India on Wednesday, according to data compiled by FXStreet.

    The price for Gold stood at 7,303.81 Indian Rupees (INR) per gram, down compared with the INR 7,313.69 it cost on Tuesday.

    The price for Gold decreased to INR 85,189.29 per tola from INR 85,305.47 per tola a day earlier.

    Unit measure Gold Price in INR
    1 Gram 7,303.81
    10 Grams 73,037.31
    Tola 85,189.29
    Troy Ounce 227,184.50

     

    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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  • WTI rises above $74.00 on larger drop in US crude oil inventories, hopes for China’s demand


    • WTI price gains traction to near $74.15 in Wednesday’s Asian session.
    • US crude oil inventories fell by 4.022 million barrels last week, according to the API. 
    • Oil traders brace for the FOMC Minutes on Wednesday ahead of the US December NFP report. 

    West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.15 on Wednesday. The WTI price edges higher amid expected higher Chinese demand and a larger drop in US crude stocks. 

    A large drop in US crude inventories last week provides some support to the WTI. The API weekly report showed crude oil stockpiles in the United States for the week ending January 3 fell by 4.022 million barrels, compared to a decline of 1.442 million barrels in the previous week. The market consensus estimated that stocks would decrease by 250,000 barrels. Furthermore, the escalating geopolitical tensions in the Middle East and ongoing Russia-Ukraine conflicts could boost the WTI price in the near term. 

    On Tuesday, the National Development and Reform Commission (NDRC), China’s top economic planner, issued a guideline for building a unified national market, breaking down market barriers to boost domestic demand while enhancing openness. The positive development surrounding the Chinese stimulus measure could boost the black gold price as China is the world’s second-largest economy. 

    ”While the market is currently range-bound, it is recording gains on the back of improved demand expectations fuelled by holiday traffic and China’s economic pledges,” Hilal said in a morning note. “However, the primary trend remains bearish.”

    Looking ahead, Oil traders will keep an eye on the Minutes of the Federal Open Market Committee (FOMC), which is due later on Wednesday. On Friday, the US employment data for December will be in the spotlight. Economists expect 154,000 new jobs for December, while the unemployment rate is expected to remain at 4.2% during the same report period. In case of a stronger-than-expecetd outcome, this could lift the Greenback and weigh on the USD-denominated commodity price in the near term. 

    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.

     



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