India Gold price today: Gold rises, according to FXStreet data
Gold prices rose in India on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 8,403.31 Indian Rupees (INR) per gram, up compared with the INR 8,368.14 it cost on Monday.
The price for Gold increased to INR 98,014.58 per tola from INR 97,604.33 per tola a day earlier.
| Unit measure | Gold Price in INR |
|---|---|
| 1 Gram | 8,403.31 |
| 10 Grams | 84,033.12 |
| Tola | 98,014.58 |
| Troy Ounce | 261,372.40 |
Daily Digest Market Movers: Gold price continues to draw support from a combination of factors
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The Israel Defense Forces (IDF) said it is carrying out "extensive strikes" in the Gaza Strip and targeting what it called "terror targets" belonging to Hamas. This comes after talks to extend the Gaza ceasefire failed to reach an agreement at meetings in Qatar, raising the risk of further escalation of geopolitical tensions in the region.
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Concerns about the economic slowdown resurfaced after US Treasury Secretary Scott Bessent said on Sunday there were no guarantees that the U.S. economy will avoid recession this year. This further underpins demand for traditional safe-haven assets and lifts the Gold price to a fresh all-time peak during the Asian session on Tuesday.
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On the economic data front, the US Census Bureau reported on Monday that US Retail Sales rose by 0.2% in February vs the downwardly revised decline of 1.2% the prior month. The reading fell short of expectations for a 0.7% growth, signaling consumer caution and lifting bets that the Federal Reserve will resume its rate-cutting cycle.
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The Fed funds futures suggest that the US central bank could lower borrowing costs by 25 basis points each at the June, July, and October monetary policy meetings. This might cap the attempted US Dollar recovery from its lowest level since October 2024 touched on Monday and is further seen acting as a tailwind for the non-yielding yellow metal.
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Meanwhile, US President Donald Trump expressed optimism that Russia and Ukraine will be able to come to a ceasefire and ultimately a peace deal. This comes ahead of the Trump-Putin peace talks on Tuesday, which, along with the optimism led by China's stimulus measures announced over the weekend, remains supportive of the upbeat market mood.
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Traders now look to Tuesday's US economic docket – featuring the release of Building Permits, Housing Starts, and Industrial Production data. The focus, however, will remain glued to the outcome of a two-day FOMC meeting on Wednesday, which will drive the USD demand in the near term and provide a fresh directional impetus to the XAU/USD pair.
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling 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 Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
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