Gold prices in India increased on Friday, according to FXStreet data. The price for gold stood at 12,967.39 Indian Rupees (INR) per gram, up from INR 12,931.22 per gram on Thursday. Similarly, the price per tola rose to INR 151,250.20 from INR 150,827.20 a day earlier. The price for 10 grams was reported at INR 129,674.90, and for a troy ounce at INR 403,334.20 [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 that gold is widely seen as a safe-haven asset and 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, with central banks adding 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, 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, interest rates, and the strength of the US Dollar. Gold typically has an inverse correlation with the US Dollar and US Treasuries, and tends to rise when the Dollar depreciates or during sell-offs in riskier markets [1].
CONCLUSION
Gold prices in India saw a moderate increase, reflecting ongoing demand and the metal's role as a safe-haven asset. Central bank purchases and macroeconomic factors continue to influence gold's valuation. The market impact is medium, with investors likely to monitor further developments in currency and global risk sentiment.