India Gold price today: Gold recovers, according to MCX data

Gold prices rose in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).

Gold price stood at 62,125 Indian Rupees (INR) per 10 grams, up INR 25 compared with the INR 62,100 it cost on Monday.

As for futures contracts, Gold prices increased to INR 62,323 per 10 gms from INR 62,095 per 10 gms.

Prices for Silver futures contracts decreased to INR 72,568 per kg from INR 72,427 per kg.

Global Market Movers: Comex Gold price sticks to modest gains despite bearish fundamental backdrop

• The New York Federal Reserve said in a report on Monday that US consumers' projection of inflation over the short run fell to the lowest level in nearly three years in December, which undermines the US Dollar and benefits the Comex Gold price.
• Inflation one year from now is expected to be at 3%, marking the lowest reading since January 2021, while inflation three years from now is seen at 2.6% and price pressures five years ahead were at 2.5% versus 2.7% in November.
• The data reaffirms expectations for an imminent shift in the Federal Reserve's policy stance, though investors continue scaling back their expectations for more aggressive policy easing in the wake of a still-resilient US economy.
• Atlanta Fed President Raphael Bostic noted that inflation has declined more than expected and that the US central bank still needs to give tight policy time to work on cooling off inflation. Bostic sees two 25 bps cuts by year-end 2024.
• Fed Governor Michelle Bowman said that the current policy stance appears sufficiently restrictive and that inflation could fall further with the policy rate held steady for some time, though the upside inflation risks remain.
• This raises uncertainty over the possibility of early interest rate cuts by the Fed, which assist the yield on the benchmark 10-year US government bond to hold steady above the 4.0% threshold and might cap the non-yielding yellow metal.
• The market focus, meanwhile, remains glued to the US consumer inflation figures on Thursday, which should help determine the next leg of a directional move for the Comex Gold price.

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