India Gold price today: FXStreet data points to lower prices

Thursday brought lower gold prices in India, FXStreet's compiled data showed.

11,970.11 Indian Rupees (INR) per gram was the gold price, compared with INR 12,002.76 on Wednesday.

Per tola, gold declined from INR 139,997.80 a day earlier to INR 139,616.50.

Measurement Unit	Gold Price (INR)
1 Gram	11,970.11
10 Grams	119,701.00
Tola	139,616.50
Troy Ounce	372,310.00

To calculate gold prices in India, FXStreet converts international prices using USD/INR and adjusts them to local measurement units. Daily updates use market rates available at publication. Prices are just for reference and local rates could diverge slightly.

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Gold: Frequently Asked Questions

Gold's Investment Appeal

As both a store of value and a medium of exchange, gold has held a central 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 is not dependent on a particular issuer or government, it is also widely viewed as a hedge against inflation and currency depreciation.

Central Banks Lead Gold Holdings

The largest holders of gold are central banks. To underpin 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 in 2022, valued at around $70 billion. No year since records began has seen larger purchases. Emerging-economy central banks, including those in China, India and Turkey, are rapidly expanding their gold reserves.

Gold's Inverse Links With Other Assets

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

Key Drivers of Gold Prices

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

(An automation tool was used in creating this post.)