Gold prices in India experienced an increase on Thursday, according to FXStreet data. The price per gram of gold rose to 14,548.90 Indian Rupees (INR), up from 14,483.50 INR on Wednesday. Similarly, the price per tola increased to 169,695.40 INR from 168,932.70 INR the previous day. The price for 10 grams was reported at 145,488.90 INR, and for a troy ounce, it stood at 452,509.80 INR [1].
FXStreet notes that gold prices in India are calculated by adapting international prices (USD/INR) to local currency and measurement units, with daily updates based on market rates at the time of publication. However, it is mentioned that local rates could diverge slightly from these reference prices [1].
The article highlights gold's role as a safe-haven asset, especially during turbulent times, and its use as a hedge against inflation and depreciating currencies. Central banks, particularly from emerging economies such as China, India, and Turkey, have been increasing their gold reserves. In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, marking the highest yearly purchase since records began, according to the World Gold Council [1].
Gold's price is influenced by various factors, including geopolitical instability, recession fears, and movements in the US Dollar. The metal is inversely correlated with the US Dollar and US Treasuries, and tends to rise when the Dollar depreciates or when there are sell-offs in riskier markets [1].
CONCLUSION
Gold prices in India have risen, reflecting both local and international market dynamics. The increase underscores gold's continued appeal as a safe-haven asset and its importance in central bank reserves. Market participants may continue to monitor global economic conditions and currency movements for further price direction.