Gold price today: India records a decline, FXStreet data show

Friday saw Gold prices decline in India, data compiled by FXStreet showed.

12,225.43 Indian Rupees (INR) per gram was the latest Gold price. This was below Thursday’s INR 12,280.85.

At INR 142,615.30 per tola, Gold was also lower than the previous day’s INR 143,241.50 per tola.

Measurement Unit	INR Gold Price
1 Gram	12,225.43
10 Grams	122,268.20
Tola	142,615.30
Troy Ounce	380,253.80

To calculate Gold prices in India, FXStreet converts international prices into local currency and measurement units using USD/INR. Daily updates reflect market rates at the time of publication. Prices are just for reference and local rates could diverge slightly.

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Gold: Key Questions

Gold’s appeal to investors

Widely used to preserve value and facilitate exchange, Gold has held an important place throughout human history. Beyond its lustre and use in jewellery, the precious metal is now broadly regarded as a safe-haven asset: an investment considered attractive during periods of turmoil. Its independence from any particular issuer or government also underpins its widespread appeal as a hedge against inflation and currency depreciation.

Gold’s largest buyers

The largest holders of Gold are central banks. To underpin their currencies during turbulent periods, they typically diversify reserves and purchase Gold, reinforcing perceptions of economic and currency strength. Substantial Gold reserves can bolster confidence in a country’s solvency. According to World Gold Council data, central banks increased their reserves by 1,136 tonnes of Gold in 2022, worth around $70 billion. No higher annual purchase has been recorded. Emerging-economy central banks, including those in China, India and Turkey, are rapidly expanding their Gold reserves.

Gold’s relationship with other assets

Both the US Dollar and US Treasuries are leading reserve and safe-haven assets, and Gold tends to move inversely to them. A declining Dollar typically supports Gold, allowing investors and central banks to diversify their holdings during unsettled periods. The metal also has an inverse relationship with risk assets. Equity-market gains generally put pressure on Gold prices; selling in riskier markets, by contrast, tends to support the precious metal.

Gold’s main price drivers

Many factors influence Gold prices. Its safe-haven role means geopolitical turmoil or concerns over a deep recession can trigger rapid price gains. Because Gold offers no yield, lower interest rates tend to support it, while more expensive borrowing usually puts the metal under pressure. Most price movements, however, hinge on the US Dollar (USD), as Gold is quoted in dollars (XAU/USD). Dollar strength generally restrains Gold prices, while Dollar weakness is likely to lift them.

(An automation tool was used in creating this post.)