India Gold price today: Gold falls, according to FXStreet data

India Gold price : On Monday, gold prices in India experienced a decline, as detailed by FXStreet latest figures.

The cost of gold per gram fell to 6,734.82 Indian Rupees (INR), a decrease from the 6,751.38 INR recorded on the preceding Friday.

Similarly, the price for gold per tola dropped to 78,553.60 INR from 78,746.75 INR the previous week.

The table below outlines the current gold prices in India:

• 1 Gram: 6,734.82 INR
• 10 Grams: 67,348.19 INR
• Tola: 78,553.60 INR
• Troy Ounce: 209,476.40 INR

FXStreet derives these gold prices in India by adjusting international rates (USD/INR) to the local currency and measurement systems.

These prices are updated daily, reflecting the market rates at the time of publication. It’s important to note that actual local rates may vary slightly from these reference prices.

Why Invest in Gold?

Gold has been a significant asset throughout human history, valued both for its physical properties and its role as a store of value.

Beyond its traditional use in jewelry, gold is regarded as a “safe-haven” asset, making it a popular investment during periods of economic uncertainty.

Investors often turn to gold to hedge against inflation and currency devaluation since its value is not tied to any single issuer or government.

Major Gold Buyers

Central banks are among the largest holders of gold.

They acquire gold to bolster their national currencies during unstable economic periods, aiming to diversify their reserves and enhance economic stability.

For instance, in 2022, central banks collectively added 1,136 tonnes of gold to their reserves, a record high valued at around $70 billion,

according to the World Gold Council. Emerging economies such as China, India, and Turkey have been notably aggressive in increasing their gold reserves.

Gold and Other Assets

Gold exhibits an inverse relationship with the US Dollar and US Treasuries, both of which are significant safe-haven assets.

When the US Dollar weakens, the price of gold generally increases, offering a safe investment alternative and encouraging central banks and investors to diversify their holdings.

Conversely, gold prices often decline when the stock market experiences a rally, as investors might prefer higher-risk assets.

In times of market downturns, gold tends to gain favor, highlighting its role as a protective asset.

Factors Influencing Gold Prices

Several factors contribute to the fluctuations in gold prices.

Geopolitical instability or economic recession fears can drive gold prices up due to its status as a safe-haven asset. Being a non-yielding asset, gold tends to rise in value when interest rates are low.

Conversely, higher interest rates can exert downward pressure on gold prices. However, the primary driver of gold prices remains

the performance of the US Dollar (USD), as gold is priced in dollars (XAU/USD).

A strong USD typically suppresses gold prices, while a weaker USD tends to boost them.

In summary, gold remains a vital investment asset influenced by a range of economic and geopolitical factors.

Its role as a safe-haven asset and its relationship with other financial instruments make it a key component in investment strategies, especially during times of economic uncertainty.