Gold prices in India increased on Monday, according to FXStreet data. The price for gold stood at 12,718.67 Indian Rupees (INR) per gram, up from INR 12,653.13 per gram on Friday. Similarly, the price per tola rose to INR 148,349.40 from INR 147,583.70 on Friday, indicating a consistent upward movement in the local gold market [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. The reference price for 10 grams was INR 127,188.10, and for a troy ounce, INR 395,583.50 [1].
The article highlights that gold is widely regarded as a safe-haven asset, especially during turbulent times, and is also seen 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, 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, and movements in the US Dollar. The article also notes that gold tends to rise when the US Dollar depreciates and is inversely correlated with risk assets and 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 its role as a safe-haven asset suggest ongoing support for gold prices in the current environment.