Gold prices in India increased on Thursday, with the price per gram rising to 14,538.29 Indian Rupees (INR) from 14,433.66 INR the previous day, and the price per tola climbing to 169,571.70 INR from 168,351.40 INR, according to FXStreet data [1]. The price per troy ounce was reported at 452,191.60 INR [1]. FXStreet notes that these prices are calculated by adapting international gold prices (XAU/USD) to the local currency and measurement units, and are updated daily based on market rates at the time of publication [1].
Globally, gold (XAU/USD) attracted dip-buyers during the Asian session, reversing much of the previous day's retracement from a nearly four-week high [2]. The market mood was buoyed by hopes for renewed diplomacy between the US and Iran, with US President Donald Trump expressing optimism that the war with Iran may soon conclude and the White House signaling hope for a deal to end the conflict [2]. Reports also indicated the possibility of a second round of peace talks between the US and Iran in the coming days [2]. This optimism supported riskier assets and weakened the US Dollar, benefiting gold prices [2].
Additionally, diminishing odds of a US Federal Reserve rate hike contributed to bearish sentiment around the USD and further supported gold, a non-yielding asset [2]. The US Producer Price Index (PPI) released earlier in the week eased concerns about inflation from war-driven energy price surges, tempering hawkish Fed expectations [2]. According to the CME Group's FedWatch Tool, late 2026 remains the primary window for potential easing by the US central bank, which has dragged the USD Index (DXY) to its lowest level since late February and bolstered the case for further gold gains [2].
Despite the positive sentiment, geopolitical risks remain. The US naval blockade of Iranian ports has been fully implemented, and Iran's military leadership has threatened to halt trade in the Gulf region if the blockade is not lifted [2]. Iran has also demanded an end to Israeli attacks on Lebanon as a precondition for further talks, while Israeli Prime Minister Benjamin Netanyahu has not committed to a ceasefire and has instructed the IDF to continue security operations [2]. These ongoing tensions are expected to limit USD losses and cap gold's upside [2].
From a technical perspective, the XAU/USD pair remains just below the 200-period Simple Moving Average (SMA) at $4,831.22, which acts as immediate resistance. The Moving Average Convergence Divergence (MACD) has turned positive and the Relative Strength Index (RSI) is near 60, indicating firm but not overheated bullish momentum [2].
CONCLUSION
Gold prices in India have risen in line with global trends, supported by geopolitical developments and expectations of US Federal Reserve easing. While optimism over Iran-US diplomacy and softer Fed outlooks have buoyed gold, persistent geopolitical risks may limit further gains. Market participants should monitor ongoing negotiations and technical resistance levels for future price direction.