On Thursday, gold prices in India experienced an increase, according to FXStreet data. The price per gram of gold rose to 15,307.91 Indian Rupees (INR), up from 15,179.11 INR the previous day. Similarly, the price per tola increased to 178,547.30 INR from 177,046.10 INR a day earlier. The price for 10 grams stood at 153,076.40 INR, while a troy ounce was priced at 476,132.70 INR [1].
FXStreet notes that gold prices in India are calculated by adapting international prices (USD/INR) to local currency and measurement units, with daily updates based on market rates at the time of publication. These prices are for reference, and local rates may diverge slightly [1].
The article highlights gold's role as a safe-haven asset, widely considered a good investment during turbulent times and as a hedge against inflation and depreciating currencies. Central banks, particularly those from emerging economies such as China, India, and Turkey, are increasing their gold reserves. In 2022, central banks added 1,136 tonnes of gold worth around $70 billion to their reserves, marking the highest yearly purchase since records began, according to the World Gold Council [1].
Gold's price is influenced by various factors, including geopolitical instability, recession fears, and interest rates. It is inversely correlated with the US Dollar and US Treasuries, as well as risk assets like stocks. When the US Dollar depreciates or risk assets sell off, gold prices tend to rise. Conversely, rallies in the stock market or higher interest rates can weigh down on gold prices [1].
CONCLUSION
Gold prices in India rose on Thursday, reflecting increased demand and safe-haven appeal amid broader market dynamics. Central banks continue to accumulate gold, underscoring its importance as a reserve asset. The market impact is medium, with sentiment leaning positive due to gold's perceived stability and value.