Gold prices in India fell on Tuesday, based on data compiled by FXStreet. Gold was priced at INR 14,428.73 per gram, down from INR 14,513.10 on Monday.
The price per tola slipped to INR 168,293.80 from INR 169,277.90 a day earlier. Other listed rates were INR 144,287.30 for 10 grams and INR 448,784.40 per troy ounce.
FXStreet converts international gold prices into Indian rupees using USD/INR and local units. The figures are updated daily at the time of publication and are for reference, as local prices may differ slightly.
Gold is often used as a store of value and a medium of exchange, and is also used in jewellery. It is also used as a hedge against inflation and currency depreciation.
Central banks are the largest holders of gold and may buy it to diversify reserves. World Gold Council data says central banks added 1,136 tonnes worth about $70 billion in 2022, the highest annual purchase on record.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to risk assets. Its price can be affected by geopolitical risks, recession fears, interest rates, and the US Dollar because gold is priced in dollars (XAU/USD).
With inflation proving difficult to tame, gold remains a critical asset for hedging. We saw this throughout 2025, as core inflation remained stubbornly above the 3% level in both the US and Europe. This persistent price pressure continues to support the case for holding gold as a store of value.
Central bank buying provides a strong underlying bid for the market. Looking back, we saw central banks add over 1,000 tonnes to their reserves in both 2022 and 2023, a trend that continued through 2025. This consistent demand from official sources creates a solid floor under the price, limiting downside risk for traders.
The primary focus for the coming weeks will be on future interest rate policy. After holding rates steady for most of 2025, the market is now pricing in potential rate cuts by the US Federal Reserve in the third quarter of this year, 2026. As a non-yielding asset, gold becomes more attractive as interest rates are expected to fall.
This anticipation of lower rates is already putting pressure on the US Dollar. As gold is priced in dollars, a weaker dollar typically pushes the metal’s price higher. This inverse relationship will be a key driver of gold’s performance moving forward.
For derivative traders, this environment suggests preparing for upward volatility. Buying call options could be a prudent strategy to gain exposure to potential price spikes caused by a confirmed shift in central bank policy. This allows for participation in the upside while defining the maximum risk on the trade.
We must also watch for any instability in the broader financial markets. A significant sell-off in equities, driven by recession fears or geopolitical events, would likely trigger a flight to safety. Gold’s status as a safe-haven asset means it would benefit directly from such a move.
