India Gold price today: FXStreet data show an increase

India’s Gold prices advanced on Wednesday, FXStreet’s compiled data showed.

At 12,198.48 Indian Rupees (INR) per gram, Gold was higher than Tuesday’s price of INR 12,158.77.

Per tola, Gold climbed from INR 141,817.50 a day earlier to INR 142,280.30.

Measurement Unit	Gold Price (INR)
1 Gram	12,198.48
10 Grams	121,987.20
Tola	142,280.30
Troy Ounce	379,415.30

To calculate Gold prices in India, FXStreet converts international prices using USD/INR into local currency and measurement units. Daily updates use market rates available at the time of publication. Prices are just for reference and local rates could diverge slightly.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Gold: Key Questions Answered

Gold’s Role in Investment

Widely used as both a store of value and a medium of exchange, Gold has held a central place throughout human history. Beyond its lustre and use in jewellery, the precious metal is now widely regarded as a safe-haven asset: an investment considered attractive during periods of turmoil. Because it is not dependent on any particular issuer or government, Gold is also broadly viewed as a hedge against inflation and currency depreciation.

Gold’s Largest Buyers

The largest holders of Gold are central banks. To support their currencies during turbulent periods, they typically diversify reserves and purchase Gold, strengthening perceptions of their economies and currencies. Substantial Gold reserves can help 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 larger annual purchase has been recorded. Emerging-economy central banks, including those in China, India and Turkey, are rapidly expanding their Gold reserves.

Gold’s Links to Other Assets

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 coincides with rising Gold prices, allowing investors and central banks to diversify their holdings during turbulent periods. An inverse relationship also exists between Gold and risk assets. Stock market gains generally weigh on Gold prices; by contrast, selling in riskier markets tends to support the precious metal.

Gold Price Drivers

Many factors can influence Gold prices. Its safe-haven appeal means geopolitical instability or concerns about a deep recession can trigger a rapid price increase. Gold pays no yield, so lower interest rates tend to support it, while a higher cost of money generally puts pressure on the metal. Nevertheless, the US Dollar (USD) drives most price movements because Gold is quoted in dollars (XAU/USD). Dollar strength typically restrains Gold prices, while a weaker Dollar is likely to lift them.

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