Gold prices in India increased on Monday, according to FXStreet data. The price for gold stood at 13,495.00 Indian Rupees (INR) per gram, up from INR 13,455.97 on Friday. Similarly, the price per tola rose to INR 157,403.00 from INR 156,947.80 on Friday, indicating a consistent upward movement across different measurement units [1].
FXStreet calculates gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units, with daily updates based on market rates at the time of publication. The provided prices are for reference, and local rates may diverge slightly [1].
The article also highlights that central banks are significant gold holders, with central banks from emerging economies such as China, India, and Turkey rapidly 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 is described as a safe-haven asset, often sought during turbulent times, and is seen as a hedge against inflation and depreciating currencies. The price of gold is influenced by factors such as geopolitical instability, recession fears, interest rates, and the strength of the US Dollar, with an inverse correlation noted between gold and the US Dollar as well as US Treasuries [1].
CONCLUSION
Gold prices in India have shown a notable increase, reflecting both local and international market dynamics. The continued accumulation of gold by central banks and gold's role as a safe-haven asset suggest ongoing support for prices in uncertain economic conditions.