India Gold price today: FXStreet data show prices falling

In India, gold prices declined on Friday, FXStreet’s compiled data showed.

12,272.80 Indian Rupees (INR) was the price per gram of gold. This was down from INR 12,437.96 on Thursday.

Per tola, gold slipped to INR 143,147.50, compared with INR 145,073.90 the previous day.

Measurement Unit	Gold Price (INR)
1 Gram	12,272.80
10 Grams	122,731.50
Tola	143,147.50
Troy Ounce	381,739.80

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 Role in Investment

Widely used to store 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 widely regarded as a safe-haven asset, considered a sound investment 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.

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. World Gold Council data show that central banks increased their reserves by 1,136 tonnes of gold, worth around $70 billion, in 2022. No higher annual purchase has been recorded since records began. Emerging-market central banks, including those of 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, and gold is inversely correlated with them. A weakening Dollar generally accompanies a rise in gold, allowing investors and central banks to diversify holdings during turbulent periods. The metal also has an inverse relationship with risk assets: stock-market gains tend to pressure gold prices, whereas selling in riskier markets generally benefits the precious metal.

Key Drivers of Gold Prices

Numerous factors can influence gold prices. Its safe-haven appeal means geopolitical turmoil or concerns over a severe recession can drive prices sharply higher. Because gold provides no yield, lower interest rates tend to support it, while higher borrowing costs usually put it under pressure. Most price movements, however, hinge on the performance of the US Dollar (USD), since gold is denominated 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.)