Gold prices in India experienced a notable rise on Friday, as reported by FXStreet data. The price per gram of gold increased to 14,176.77 Indian Rupees (INR), up from 13,956.23 INR the previous day. Similarly, the price per tola rose to 165,356.80 INR from 162,782.80 INR a day earlier. Other unit prices included 141,768.90 INR for 10 grams and 440,947.10 INR per troy ounce, reflecting the upward trend across all measurement units [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. However, it is mentioned that these prices are for reference only and local rates may diverge slightly [1].
The article highlights gold's role as a safe-haven asset, particularly during turbulent times, and its function as a hedge against inflation and depreciating currencies. Central banks, especially those from emerging economies such as China, India, and Turkey, have been increasing their gold reserves, with central banks adding 1,136 tonnes of gold worth around $70 billion to their reserves in 2022, marking the highest yearly purchase since records began [1].
Gold's price is influenced by a variety of factors, including geopolitical instability, recession fears, and movements in the US Dollar. The metal is inversely correlated with the US Dollar and US Treasuries, and tends to rise when the Dollar depreciates or when risk assets decline. Lower interest rates also favor gold, while higher rates tend to weigh down its price [1].
CONCLUSION
Gold prices in India saw a significant daily increase, reflecting both local and international market dynamics. The rise underscores gold's continued appeal as a safe-haven asset and its sensitivity to global economic factors. Market participants may continue to monitor gold prices closely, given its role in central bank reserves and its inverse relationship with the US Dollar.