Gold price today in India: Prices decline, FXStreet data shows

India’s gold prices declined on Wednesday, data compiled by FXStreet showed.

12,359.88 Indian Rupees (INR) per gram was the gold price, below Tuesday’s INR 12,420.69.

On a per-tola basis, gold slipped from INR 144,872.50 a day earlier to INR 144,163.20.

Measurement Unit	Gold Price (INR)
1 Gram	12,359.88
10 Grams	123,599.70
Tola	144,163.20
Troy Ounce	384,432.50

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: Frequently Asked Questions

What attracts investors to gold?

Throughout human history, gold’s widespread use as a store of value and medium of exchange has given it a central role. 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 turmoil. With no dependence on a particular issuer or government, gold is also widely viewed as a hedge against inflation and currency depreciation.

Which buyers hold the most gold?

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

How does gold move relative to other assets?

Both the US Dollar and US Treasuries are major reserve and safe-haven assets, and gold is inversely correlated with them. Dollar depreciation generally supports gold, allowing investors and central banks to diversify their holdings during turbulent periods. Risk assets also have an inverse relationship with gold. Equity-market gains tend to weigh on the metal’s price, whereas selling in riskier markets generally supports it.

Which factors drive gold prices?

A broad range of influences can shift gold prices. Its safe-haven status means geopolitical turmoil or concerns about a deep recession can trigger a rapid rise. Because gold pays no yield, lower interest rates tend to support it, while higher borrowing costs usually weigh on the metal. Nevertheless, the direction of the US Dollar (USD) drives most price moves, as gold is quoted in dollars (XAU/USD). Dollar strength tends to restrain gold prices; a weaker Dollar, by contrast, is likely to lift them.

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