Gold price today: Gold rates climbed in the domestic futures market in the morning session on Wednesday, January 15, amid a slight decline in the US dollar ahead of the US inflation data. The yellow metal, however, was subdued in international markets, indicating caution among investors ahead of the US consumer price index (CPI)-based inflation data, which will influence expectations about the Federal Reserve’s interest rate trajectory in the near term. MCX Gold for February 5 expiry traded 0.19 per cent higher at ₹78,308 per 10 grams around 9:20 AM.
Meanwhile, according to Reuters, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.23 per cent to 872.52 tonnes on Tuesday from 874.52 tonnes on Monday. This signals a subtle short-term shift in investor sentiment regarding the precious metal.
After the stronger-than-expected US jobs data last Friday, investors are keenly awaiting the US CPI print, due later today, to gauge the US Federal Reserve’s interest rate path. According to a Reuters poll, CPI might have risen 2.9 per cent year-on-year in December versus 2.7 per cent in November. On a monthly scale, it may increase by 0.3 per cent.
Apart from the inflation data, the focus is also on the “Trump factor”. Donald Trump will take office on Monday, January 20. Experts expect his policies on trade and taxes may drive inflation.
Of late, the rupee’s weakness has weighed on gold demand in domestic spot markets.
The rupee’s movement is crucial for Indian gold prices, as India is one of the largest gold importers globally. Hence, a fluctuating rupee directly impacts affordability and demand.
As India is one of the largest gold importers globally, the weakness of its currency makes gold expensive.
On January 15, the Indian rupee opened at 86.49 per dollar, up from its previous close of 86.53. The domestic currency hit an all-time low of 86.73 on January 13.
