India Gold price today: FXStreet data show prices moving higher

Monday saw gold prices advance in India, data compiled by FXStreet showed.

12,247.00 Indian Rupees (INR) per gram was the gold price, compared with INR 12,198.60 on Friday.

INR 142,848.30 per tola marked a rise in gold from Friday’s INR 142,282.10 per tola.

Measurement Unit	INR Gold Price
1 Gram	12,247.00
10 Grams	122,487.70
Tola	142,848.30
Troy Ounce	380,930.90

To calculate Indian gold prices, FXStreet converts international prices using USD/INR and local measurement units. Daily updates use market rates recorded at publication. Prices are just for reference and local rates could diverge slightly.

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Gold: Key Questions

Gold’s Role in Investment

Widely used to store value and facilitate exchange, gold has held an important place throughout human history. Beyond its lustre and use in jewellery, the precious metal is now widely regarded as a safe-haven asset: an investment considered attractive during periods of turmoil. Its independence from any particular issuer or government also underpins its widespread appeal as a hedge against inflation and currency depreciation.

Gold’s Largest Buyers

The largest gold holdings belong to central banks. To support their currencies during turbulent periods, they typically diversify reserves and purchase gold, seeking to strengthen perceptions of their economies and currencies. 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. Emerging-economy central banks, including those in China, India and Turkey, are rapidly expanding their gold reserves.

Gold’s Correlation With Other Assets

Both the US Dollar and US Treasuries are major reserve and safe-haven assets, and gold is inversely correlated with them. A depreciating Dollar typically accompanies a rise in gold, allowing investors and central banks to diversify holdings during turbulent periods. The relationship with risk assets is also inverse. Stock market gains tend to put pressure on gold prices; selling in riskier markets, by contrast, generally supports the precious metal.

Gold Price Drivers

A broad range of influences can move gold prices. Its safe-haven appeal means geopolitical instability or concerns over a deep recession can trigger a rapid price rise. Lower interest rates generally support gold because it pays no yield, while higher borrowing costs usually weigh on the metal. Most price movements nevertheless hinge on the US Dollar (USD), since gold is priced in dollars (XAU/USD). Dollar strength tends to restrain gold prices; a weaker Dollar, in contrast, is likely to lift them.

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