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Gold Price in India Today: Gold stabilizes, according to FXStreet data

Gold prices were virtually unchanged in India on Monday, according to data compiled by FXStreet.

The price of Gold stood at INR 6,237.85 per gram, practically stable compared to INR 6,239.41 on Friday.

Gold price remained virtually stable at INR 72,757.09 per tola from INR 72,775.23 per tola on Friday.

Unit of measurement Gold Price in INR
1 Gram 6.237,85
10 Grams 62,378.52
Tola 72,757.09
Troy Ounce 194,018.20

FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and units of measurement. Prices are updated daily based on market rates taken at the time of publication. Prices are for reference only and local rates may differ slightly.

Gold FAQs

Gold has played a pivotal role in human history as it has been widely used as a store of value and a medium of exchange. Today, apart from its luster and use for jewelry, the precious metal is considered a safe haven asset, meaning it is considered a good investment in turbulent times. Gold is also considered a hedge against inflation and currency depreciation as it is not dependent on any particular issuer or government.

Central banks are the largest holders of gold. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of the strength of the economy and the currency. High gold reserves can be a source of confidence in a country’s solvency. Central banks added 1,136 tonnes of gold worth about $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the largest annual purchase on record. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasury bonds, which are the main reserve and safe haven assets. When the Dollar depreciates, the price of Gold tends to rise, allowing investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken the price of Gold, while sell-offs in riskier markets tend to favor the precious metal.

The price of Gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of Gold to rise rapidly due to its status as a safe haven asset. As a non-yielding asset, the price of Gold tends to rise when interest rates fall, while rising money prices tend to weigh down the yellow metal. Still, most of the moves depend on how the US Dollar (USD) performs, as the asset is traded in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold in check, while a weaker Dollar is likely to push up Gold prices.

(An automation tool was used to create this post.)

Source: Fx Street

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