Gold prices in India remained steady, with the price per gram at 8,361.12 INR, slightly up from 8,358.71 INR the previous day. For tola, the price stood at 97,522.43 INR, compared to 97,496.98 INR previously.

Gold prices are based on international market rates, updated daily in line with local currency values. Key price statistics include 10 grams at 83,613.91 INR and a troy ounce at 260,053.80 INR.

Market movements included a drop in the US 10-year Treasury bond yield to 4.270%. Additionally, the US Dollar Index rose to 103.85, while the Producer Price Index for February increased 3.2% year-on-year.

Initial Jobless Claims decreased to 220K, better than expectations. The Atlanta Fed GDPNow model forecasts a -2.4% growth rate for Q1 2025, representing the first negative growth since the COVID-19 pandemic.

Gold historically serves as a store of value and is often viewed as a hedge against inflation and currency depreciation. Various factors, such as geopolitical events and interest rates, greatly influence its price movement.

The gold market has remained rather stable, seeing only a marginal increase in pricing across various measurements. The cost per gram edged up slightly, while larger denominations, such as a tola, also showed minor upward adjustments. These movements reinforce the fact that gold pricing in India closely follows shifts in broader international markets, adjusted for fluctuations in local currency values.

Gold, being a globally traded commodity, derives its valuation from multiple external influences. While the current figures reflect minute changes, they indicate that prices are consistently reassessed in response to international benchmarks. The figure for 10 grams remains high, and the price for a full troy ounce has maintained a solid position.

Beyond the physical market, there have been notable shifts in other financial indicators that often correlate with gold’s valuation. Bond yields in the United States fell, with the 10-year Treasury retreating to 4.270%. This drop in yields can make non-yielding assets like gold comparatively more appealing. On the other hand, the US Dollar Index moved up to 103.85—a stronger dollar tends to dampen global gold prices, as it makes the metal more expensive when converted into other currencies.

The Producer Price Index data signalled a 3.2% year-on-year increase, indicating that underlying price pressures in the economy persist. Meanwhile, jobless claims fell to 220K, suggesting a tighter labour market. With the Atlanta Fed’s GDPNow model forecasting negative growth for the first quarter of next year, concerns are rising over potential economic weakness. If this projection holds, it would mark the first economic contraction on record since the early days of the pandemic.

Gold remains widely regarded as a hedge against inflation and currency depreciation. It is also sensitive to broader economic trends, particularly shifts in monetary policy and geopolitical uncertainty. Interest rates, in particular, hold a strong influence. If yields continue to decline or inflation remains persistent, demand for gold may rise. Conversely, a more resilient economy and sustained dollar strength could limit further upside.

Given these conditions, traders should be alert in the coming weeks. Bond movements, inflation data, and broader economic performance are all elements that weigh on gold prices. By assessing how these factors develop, opportunities can be identified, whether in taking positions or adjusting exposure.