Gold prices in India fell on Monday, based on FXStreet data. Gold was priced at INR 14,338.81 per gram, down from INR 14,461.07 on Friday.
Gold also dropped to INR 167,244.20 per tola from INR 168,670.10 on Friday. Other listed prices were INR 143,390.50 for 10 grams and INR 445,990.90 per troy ounce.
FXStreet derives Indian gold prices by converting international rates using USD/INR and local units. Prices are updated daily at the time of publication and are for reference, as local rates may vary.
Central banks were reported as the largest holders of gold. World Gold Council data said central banks added 1,136 tonnes of gold worth around $70 billion in 2022, the highest annual purchase since records began.
Gold is often described as a store of value and a hedge against inflation and currency weakness. It is also linked to moves in the US Dollar, US Treasuries, interest rates, and market risk, with gold priced in US dollars (XAU/USD).
Given the minor price dip today, we see this not as a sign of weakness but as a potential entry point. The broader trend for gold has been strong, breaking through previous highs we witnessed back in 2024 and consolidating through much of 2025. This small pullback could be a valuable opportunity before the next leg up.
The fundamental environment remains highly supportive for gold. After the series of interest rate hikes ended in 2024, we’ve seen inflation remain stubborn, with the latest U.S. CPI data from March 2026 hovering at 2.9%, still well above the target. Markets are now pricing in a greater than 60% chance of a Fed rate cut by the fourth quarter, which makes holding a non-yielding asset like gold more attractive.
We should also remember the immense and consistent demand from central banks. Following the record purchases seen in 2022 and 2023, World Gold Council data showed that central banks globally added another 1,037 tonnes to their reserves in 2024 and continued with strong buying throughout 2025. This consistent demand acts as a strong floor for prices, limiting the potential downside for any short-term trades.
The US Dollar’s recent behavior is a critical signal for us. After a period of strength through late 2025 that capped gold’s gains, the dollar index has now broken below the key 103 level for the first time this year. A weakening dollar is historically a powerful tailwind for gold prices, and this shift should not be ignored.
With ongoing geopolitical tensions and the VIX volatility index creeping up from its 2025 lows, gold’s role as a safe-haven asset is becoming increasingly important. The environment suggests that traders could consider using options to manage risk and position for upside. Strategies like bull call spreads might be prudent to capitalize on a potential rise while defining risk in this uncertain market.
