Gold prices edged higher in India on Wednesday, according to data compiled by FXStreet.
The yellow metal traded at ₹12,778.83 per gram, up from ₹12,628.91 recorded on Tuesday. Similarly, the price per tola rose to ₹149,049.40 from ₹147,301.20 a day earlier.
Below are the latest indicative rates across key units:
- 1 Gram: ₹12,778.83
- 10 Grams: ₹127,788.00
- 1 Tola: ₹149,049.40
- 1 Troy Ounce: ₹397,476.90
FXStreet calculates Indian gold prices by adapting international rates (USD/INR) to local currency and measurement units. Figures are updated daily based on market rates at the time of publication and are for reference only; local rates may vary slightly.
Gold FAQs
Why is gold considered a safe-haven asset? Gold has historically served as a store of value and medium of exchange. Beyond jewelry, it is widely viewed as a safe-haven investment during turbulent times, a hedge against inflation, and a shield against currency depreciation, as it carries no sovereign issuer risk.
How do central banks influence gold demand? Central banks are the largest holders of gold. To bolster currency stability during volatility, they diversify reserves by purchasing gold, signaling economic strength. In 2022, central banks added a record 1,136 tonnes worth roughly $70 billion to reserves, led by emerging economies such as China, India, and Turkey.
What is gold’s correlation with the US Dollar and risk assets? Gold typically moves inversely to the US Dollar and US Treasuries. A weaker dollar lifts gold, allowing investors to diversify. It also inversely correlates with risk assets; equity sell-offs tend to boost gold, while stock market rallies weigh on it.
What drives gold price movements? Geopolitical instability and recession fears can trigger sharp rallies due to safe-haven demand. As a non-yielding asset, gold benefits from lower interest rates, while higher rates pressure prices. Ultimately, the US Dollar’s trajectory remains the primary driver, given gold is priced in dollars (XAU/USD). A strong dollar caps gains; a weaker dollar fuels upside.
