India Gold price today: FXStreet data point to lower prices

FXStreet’s compiled data showed a decline in India’s gold prices on Tuesday.

12,426.96 Indian Rupees (INR) was the price per gram of gold. This was lower than Monday’s INR 12,507.97.

At INR 144,943.80 per tola, gold was down from INR 145,890.50 a day earlier.

Measurement Unit	INR Gold Price
1 Gram	12,426.96
10 Grams	124,268.10
Tola	144,943.80
Troy Ounce	386,523.30

To calculate gold prices in India, FXStreet converts international prices using USD/INR and local measurement units. 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 Answered

Gold’s Role as an Investment

Widely used both to preserve value and to 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 and therefore a good investment during periods of turbulence. 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

Central banks hold more gold than any other group. To support their currencies during turbulent periods, they typically diversify reserves and purchase gold, strengthening perceptions of their economies and currencies. Substantial gold reserves can help build confidence in a country’s solvency. In 2022, central banks increased their reserves by 1,136 tonnes of gold valued at around $70 billion, World Gold Council data show. No larger 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 major reserve and safe-haven assets, but gold is inversely correlated with them. A weakening Dollar typically supports gold, allowing investors and central banks to diversify their holdings during turbulent periods. An inverse relationship also exists between gold and risk assets: stock market gains tend to put pressure on gold prices, whereas selling in riskier markets generally supports the precious metal.

Key Drivers of Gold Prices

Many factors can drive changes in gold prices. Given its safe-haven status, geopolitical instability or concerns about a deep recession can trigger a rapid rise. Gold pays no yield, so lower interest rates tend to support it, while higher borrowing costs generally put it under pressure. Nevertheless, the US Dollar (USD) drives most price movements because gold is quoted in dollars (XAU/USD). Dollar strength typically restrains gold prices; a weaker Dollar, by contrast, is likely to lift them.

(This post was created with the help of an automation tool.)