India Gold price today: FXStreet data show higher prices

India’s gold prices advanced on Friday, data compiled by FXStreet showed.

11,851.61 Indian Rupees (INR) per gram was the gold price, compared with INR 11,732.83 on Thursday.

Per tola, gold climbed from INR 136,849.40 a day earlier to INR 138,229.40.

Measurement Unit	Gold Price (INR)
1 Gram	11,851.61
10 Grams	118,511.40
Tola	138,229.40
Troy Ounce	368,622.90

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 Answered

Gold’s appeal as an investment

Widely used to store value and facilitate exchange, gold has held an important place throughout human history. Today, its appeal extends beyond its lustre and use in jewellery. The precious metal is widely regarded as a safe-haven asset, making it a favoured investment during periods of turbulence. With no dependence on a particular issuer or government, gold is also widely viewed as a hedge against inflation and currency depreciation.

Central banks lead gold holdings

The largest holders of gold are central banks. To support 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 the World Gold Council, central banks increased their reserves by 1,136 tonnes of gold, valued at around $70 billion, in 2022. 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 major reserve and safe-haven assets, the US Dollar and US Treasuries have an inverse correlation with gold. A depreciating Dollar typically accompanies a rise in gold, allowing investors and central banks to diversify holdings during turbulent periods. Risk assets also tend to move in the opposite direction to gold. While equity-market rallies generally weigh on the metal’s price, selling in riskier markets tends to support it.

Key drivers of gold prices

Many factors can influence gold prices. Its safe-haven status means geopolitical instability or concerns over a deep recession can trigger a rapid rise. Because gold generates no yield, lower interest rates tend to support it, while higher borrowing costs usually exert downward pressure. Most price movements, however, depend on the US Dollar (USD), as gold is quoted in dollars (XAU/USD). Dollar strength generally restrains gold prices; a weaker Dollar is likely to lift them.

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