Gold prices in India experienced an upward trend on Tuesday, as reported by FXStreet. The cost of gold per gram has risen to 12,968.36 Indian Rupees (INR), showing an increase from the previous day’s price of 12,907.22 INR. Similarly, the price for gold per tola has jumped to 151,252.10 INR from 150,539.00 INR a day earlier.
Here’s a breakdown of the latest gold prices in various units:
- Gold Price in INR:
- 1 Gram: 12,968.36
- 10 Grams: 129,676.50
- Tola: 151,252.10
- Troy Ounce: 403,361.00
FXStreet compiles these gold prices by adjusting international market prices (USD/INR) to local currency and measurement units. Prices are meticulously updated daily using market rates at the time of publication, although local rates may fluctuate slightly.
Gold has historically been significant, serving as a store of value and a medium of exchange. Today, it is primarily regarded as a safe-haven asset, gaining appeal for investors during periods of uncertainty. Its function as a hedge against inflation and depreciating currencies further enhances its attractiveness, as it does not rely on any specific issuer or government for value.
Central banks are the largest holders of gold, viewing it as a vital asset to support their currencies in volatile economic climates. Many central banks are diversifying their reserves by increasing gold holdings to bolster the perceived strength of their economies and currencies. According to the World Gold Council, central banks added 1,136 tonnes of gold worth approximately $70 billion to their reserves in 2022, marking the highest level of annual purchases since record-keeping began. Countries like China, India, and Turkey are rapidly increasing their gold reserves, reflecting a trend among emerging economies.
The price of gold typically exhibits an inverse correlation with the US Dollar and US Treasuries, both considered major safe-haven assets. When the Dollar weakens, the price of gold is likely to rise, offering a way for investors and central banks to diversify their portfolios. Conversely, during a stock market rally, gold prices may decline as risk appetite increases, while downturns in riskier markets tend to boost gold’s appeal.
Several factors can influence gold prices, including geopolitical tensions and fears of economic recessions, both of which can drive prices up as investors flock to gold’s safe-haven status. Being a yield-less asset, gold generally appreciates in value when interest rates are low; conversely, rising interest rates can exert downward pressure on its price. Ultimately, gold price movements are often dictated by the behavior of the US Dollar, as gold is priced in dollars (XAU/USD). A robust Dollar typically keeps gold prices in check, while a weaker Dollar is more likely to support an increase in gold prices.
