Gold prices in India increased on Monday, according to FXStreet data. The price for gold stood at 13,069.17 Indian Rupees (INR) per gram, up from INR 13,050.29 on Friday. Similarly, the price per tola rose to INR 152,437.30 from INR 152,216.10 on Friday. The price per troy ounce was reported at INR 406,490.50 [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 that gold is widely regarded as a safe-haven asset, especially during turbulent times, and is also seen as a hedge against inflation and depreciating currencies. Central banks, particularly from emerging economies such as China, India, and Turkey, have been 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, interest rates, and the strength of the US Dollar. Gold typically has an inverse correlation with the US Dollar and US Treasuries, and tends to rise when the Dollar weakens or when riskier assets sell off [1].
CONCLUSION
Gold prices in India saw a modest increase at the start of the week, reflecting ongoing demand and global market influences. While the market impact is low, the continued accumulation of gold by central banks and its role as a safe-haven asset remain notable factors supporting its price.