Gold prices fall in India today, FXStreet data shows

India’s gold prices moved lower on Tuesday, data compiled by FXStreet showed.

11,956.81 Indian Rupees (INR) was the price per gram of gold. This was below Monday’s INR 12,019.10.

Per tola, gold declined from INR 140,188.40 a day earlier to INR 139,458.00.

Measurement Unit	INR Gold Price
1 Gram	11,956.81
10 Grams	119,556.40
Tola	139,458.00
Troy Ounce	371,898.70

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 Investment: What Attracts Buyers?

Widely used both to store value and facilitate exchange, gold has held an important place throughout human history. Today, its appeal extends beyond its lustre and use in jewellery. The precious metal is widely regarded as a safe-haven asset, making it a favoured investment during periods of turbulence. Because gold does not depend on a particular issuer or government, it is also widely viewed as a hedge against inflation and currency depreciation.

Gold Buyers: Who Leads the Market?

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 underpin confidence in a country’s solvency. World Gold Council data show that 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. In emerging economies including China, India and Turkey, central banks are rapidly expanding their gold reserves.

Gold and Other Assets: How Do They Correlate?

Both the US Dollar and US Treasuries are major reserve and safe-haven assets, and gold is inversely correlated with them. A depreciating Dollar typically supports gold, allowing investors and central banks to diversify their holdings during turbulent periods. The relationship between gold and risk assets is also inverse. Stock market gains tend to put pressure on gold prices; conversely, selling in riskier markets generally supports the precious metal.

Gold Prices: The Main Drivers

Many factors influence gold prices. Its safe-haven appeal means geopolitical instability or concerns about a deep recession can trigger rapid gains. Gold pays no yield, so lower interest rates tend to support it, whereas higher borrowing costs usually weigh on the metal. Most price movements, however, hinge on the US Dollar (USD), as gold is denominated in dollars (XAU/USD). Dollar strength tends to restrain gold prices, while a weaker Dollar is likely to lift them.

(This post was created with the use of an automation tool.)