Gold prices in India experienced an increase on Wednesday, according to FXStreet data. The price per gram of gold rose to 14,266.94 Indian Rupees (INR), up from 13,975.40 INR recorded on Tuesday. Similarly, the price per tola increased to 166,399.80 INR from the previous day's 163,006.40 INR. The price for 10 grams stood at 142,663.40 INR, while a troy ounce was priced at 443,751.70 INR [1].
FXStreet notes that these prices are calculated by adapting international gold 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 may diverge slightly from these reference prices [1].
The article highlights that gold is widely regarded as a safe-haven asset, especially during turbulent times, and is often used 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 several factors, including geopolitical instability, recession fears, and movements in the US Dollar. The metal typically has an inverse correlation with the US Dollar and US Treasuries, and tends to rise when the Dollar depreciates or when risk assets decline [1].
CONCLUSION
Gold prices in India have risen, reflecting both local and international market dynamics. The increase underscores gold's ongoing role as a safe-haven asset and a preferred reserve for central banks, especially amid global economic uncertainties.