Gold prices in India experienced a notable increase on Friday, according to FXStreet data. The price per gram rose to 13,012.39 Indian Rupees (INR), up from 12,854.28 INR the previous day. Similarly, the price per tola climbed to 151,777.30 INR from 149,929.80 INR a day earlier, reflecting a consistent upward trend across various measurement units including 10 grams and troy ounce, which stood at 130,125.80 INR and 404,731.00 INR respectively [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 prevailing market rates. However, these prices are for reference only, and local rates may diverge slightly [1].
The article highlights gold's role as a safe-haven asset, especially during turbulent times, and its function 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, with central banks globally adding 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, marking the highest yearly purchase since records began [1].
Gold's price is influenced by a range of factors, including geopolitical instability, recession fears, and the behavior of the US Dollar. It is inversely correlated with the US Dollar and US Treasuries, and tends to rise when the Dollar depreciates or when risk assets decline. Lower interest rates also favor gold, while higher rates typically weigh down its price [1].
CONCLUSION
Gold prices in India have risen significantly, 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 developments.