India Gold price today: FXStreet data shows a decline

Gold fell to INR 12,358.95 per gram in India on Thursday. The decline was shown in data compiled by FXStreet.

At 12,358.95 Indian Rupees (INR) per gram, Gold was below Wednesday’s price of INR 12,453.72.

Per tola, Gold slipped from INR 145,257.80 a day earlier to INR 144,157.90.

Measurement Unit	Gold Price (INR)
1 Gram	12,358.95
10 Grams	123,593.00
Tola	144,157.90
Troy Ounce	384,404.60

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

Gold’s Investment Appeal

Widely used to store value and facilitate exchange, Gold has held a central 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 specific issuer or government also underpins its widespread role as a hedge against inflation and currency depreciation.

1,136 Tonnes in 2022: Central Banks’ Gold Purchases

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 in 2022, worth around $70 billion. No higher annual purchase has been recorded since records began. Emerging-economy central banks, including those in China, India and Turkey, are expanding their Gold reserves rapidly.

Gold’s Relationship With Other Assets

Both the US Dollar and US Treasuries are major reserve and safe-haven assets, and Gold tends to move inversely to them. A depreciating 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; by contrast, selling in riskier markets generally supports the precious metal.

Key Drivers of Gold Prices

A broad set of influences can shift Gold prices. Its safe-haven appeal means geopolitical instability or concerns over a deep recession can rapidly drive prices higher. Gold pays no yield, so lower interest rates tend to support it, while a higher cost of borrowing generally puts pressure on the metal. However, the US Dollar (USD) remains the main influence on most price moves because Gold is denominated in dollars (XAU/USD). Dollar strength typically restrains Gold prices, while a weaker Dollar is likely to lift them.

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