Gold prices in India declined on Thursday, according to FXStreet data.
- Per gram: ₹11,554.31, down from ₹11,620.82 on Wednesday
- Per 10 grams: ₹115,510.60
- Per tola: ₹134,767.20, down from ₹135,543.00
- Per troy ounce: ₹359,379.10
FXStreet calculates gold prices in India by converting international USD/INR rates into local currency and different units. Prices are updated daily and are indicative; local rates may vary slightly.
Why People Invest in Gold
Gold remains a popular investment due to its historical role as a store of value and a safe-haven asset. Beyond jewelry, it is widely used as a hedge against inflation and currency depreciation.
Major Buyers of Gold
Central banks hold the largest gold reserves, often using them to support national currencies during economic uncertainty. In 2022, central banks added 1,136 tonnes of gold (worth around $70 billion), the highest annual purchase on record. Emerging economies like China, India, and Turkey are rapidly increasing their holdings.
Gold’s Correlation with Other Assets
Gold typically moves inversely to the US Dollar and US Treasuries, making it a diversification tool in turbulent markets. It also tends to weaken when stock markets rally, while sell-offs in risk assets often boost demand for gold.
Factors Influencing Gold Prices
Gold prices are affected by multiple factors:
- Geopolitical tensions or recession fears boost demand.
- Interest rates: lower rates favor gold, higher rates weigh on it.
- US Dollar movements: a strong dollar can cap gold prices, while a weaker dollar generally pushes them higher.