Gold prices rose in India on Friday, according to data compiled by FXStreet.
Gold price was at INR 6,933.35 per gram, up from INR 6,905.34 on Thursday.
Gold prices rose to INR 80,880.93 per tola from INR 80,545.38 per tola the previous day.
| Unit of measurement | Gold Price (Indian Rupee) |
|---|---|
| 1 gram | 6,933.35 |
| 10 grams | 69,343.53 |
| Torah | 80,880.93 |
| Troy ounce | 215,658.20 |
FXStreet calculates gold prices in India by adapting the international price (USD/INR) to the local currency and unit of measurement. Prices are updated daily based on market rates at the time of publication. Prices are indicative only and local rates may vary slightly.
Gold FAQ
Gold has played a vital role throughout 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 in jewellery, the precious metal is widely recognised as a safe haven asset and considered a good investment during volatile times. Gold is also widely seen as a hedge against inflation and currency depreciation, as it is not tied to any particular issuer or government.
Central banks are the largest holders of gold. To support their currencies in times of uncertainty, central banks tend to buy gold to diversify their reserves and to impress upon them the strength of their economies and currencies. Large gold reserves can be a source of confidence in a country's solvency. According to data from the World Gold Council, central banks added 1,136 tonnes of gold worth about $70 billion to their reserves in 2022, the highest annual purchase since records began. Central banks in emerging countries such as China, India and Turkey are rapidly increasing their gold reserves.
Gold is inversely correlated with the US Dollar and US Treasury Bonds, which are the primary reserve and safe haven assets. When the US Dollar falls, gold tends to rise, allowing investors and central banks to diversify their assets during volatile times. Gold is also inversely correlated with risk assets. Rising stock markets tend to drive gold prices down, while sell-offs in risky markets tend to favor the precious metal.
Gold prices fluctuate due to a variety of factors. Geopolitical instability or fears of a deep recession can send gold prices soaring due to gold's status as a safe haven. As a non-yielding asset, gold tends to rise in value the lower interest rates are, but rising cost of funds typically weighs on gold. Still, since the asset is priced in dollars (XAU/USD), most of the movement is determined by the movement of the US Dollar (USD). A strong dollar tends to suppress gold prices, while a weak dollar can boost gold prices.
(An automated tool was used to create this post.)
