India Gold price today: Prices decline, FXStreet data show

Thursday brought a decline in India's gold prices, data compiled by FXStreet showed.

12,407.10 Indian Rupees (INR) per gram was the latest gold price. This was below Wednesday's INR 12,561.63.

At INR 144,714.00 per tola, gold was also lower than the previous day's INR 146,516.50 per tola.

Measurement unit	Gold Price (INR)
1 Gram	12,407.10
10 Grams	124,073.90
Tola	144,714.00
Troy Ounce	385,904.20

To calculate India's gold prices, FXStreet converts international prices into local currency and measurement units using USD/INR. Daily updates reflect market rates at the time of publication. Prices are just for reference and local rates could diverge slightly.

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Gold: Key Questions

Gold's investment appeal

Widely used both to store value and facilitate exchange, gold has held an important place throughout human history. Today, its appeal extends beyond its lustre and use in jewellery. Investors widely regard the precious metal as a safe-haven asset, considering it a sound investment in periods of turbulence. Because gold is not dependent on a particular issuer or government, it is also commonly viewed as a hedge against inflation and currency depreciation.

Gold's largest buyers

The largest holders of gold are central banks. To support their currencies during turbulent periods, they typically diversify reserves and purchase gold, reinforcing perceptions of economic and currency strength. Substantial gold reserves can bolster confidence in a country's solvency. World Gold Council data show that central banks increased their reserves by 1,136 tonnes of gold in 2022, worth around $70 billion. No higher annual purchase has been recorded since records began. Emerging-economy central banks, including those of China, India and Turkey, are rapidly expanding their gold reserves.

Gold's links with other assets

Both the US Dollar and US Treasuries are major reserve and safe-haven assets, and gold has an inverse correlation with them. A depreciating Dollar typically coincides with a rise in gold, allowing investors and central banks to diversify their holdings during turbulent periods. Risk assets also tend to move inversely to gold. Stock-market gains usually put pressure on the gold price, whereas selling in riskier markets tends to support the precious metal.

Key drivers of gold prices

Many factors can drive changes in gold prices. Its safe-haven status means geopolitical instability or concerns about a deep recession can trigger a rapid price rise. Gold generates no yield, so lower interest rates tend to support it, while higher borrowing costs generally weigh on the metal. Most price movements, however, hinge on the US Dollar (USD), as gold is quoted in dollars (XAU/USD). Dollar strength tends to restrain gold prices; a weaker Dollar is likely to lift them.

(This post was created with the use of an automation tool.)