Gold prices in India rose on Thursday, according to data compiled by FXStreet. The price per gram stood at INR 13,509.58, up from INR 13,480.30 on Wednesday. For those measuring by the tola, a traditional unit of weight, the price increased to INR 157,573.10 from INR 157,231.60 a day earlier.
How gold prices are calculated in India
FXStreet determines Indian gold prices by converting the international spot price of gold (XAU/USD) into Indian rupees and adjusting for local measurement units. The data is updated daily based on market rates at the time of publication. While these figures provide a useful benchmark, actual local rates may vary slightly due to dealer premiums, taxes and regional differences.
What drives gold prices globally
Gold has long been regarded as a store of value and a medium of exchange. Today, it is widely seen as a safe-haven asset that investors turn to during periods of economic uncertainty or geopolitical instability. Gold is also considered a hedge against inflation and currency depreciation because it has no issuer or government backing.
The price of gold moves inversely to the US Dollar and US Treasuries, both of which are major reserve and safe-haven assets. When the dollar weakens, gold tends to rise. Similarly, gold often falls when stock markets rally and gains when risk assets sell off.
Central banks are the largest holders of gold. They buy the metal to diversify reserves and support their currencies in turbulent times. In 2022, central banks added 1,136 tonnes of gold worth roughly $70 billion to their reserves, the highest yearly purchase on record, according to the World Gold Council. Emerging economies such as China, India and Turkey have been particularly active in increasing their gold holdings.
Interest rates also influence gold. Because gold pays no yield, lower interest rates reduce the opportunity cost of holding it, while higher rates tend to weigh on the price. However, the most direct driver remains the strength of the US Dollar, since gold is priced in dollars on global markets.
Key takeaways
- Gold in India rose to INR 13,509.58 per gram on Thursday, up from INR 13,480.30 the previous day.
- The price per tola increased to INR 157,573.10 from INR 157,231.60.
- FXStreet calculates Indian gold prices by converting the international XAU/USD rate into rupees and local units.
- Gold prices are influenced by the US Dollar, interest rates, geopolitical risk and central bank buying.
Common questions
How are gold prices in India determined?
FXStreet calculates Indian gold prices by converting the international spot gold price (XAU/USD) into Indian rupees and adjusting for local units such as grams and tolas. The data is updated daily based on market rates at the time of publication. Actual local rates may differ slightly due to dealer margins and other factors.
Gold remains a key asset for Indian households and central banks. For the latest official rates, check the live gold price on GoldRate.info.