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

India's gold prices fell on Tuesday, according to FXStreet data. The price for gold was INR 13,537.60 per gram, a decrease from INR 13,588.41 on Monday. The cost for gold per tola also dropped to INR 157,899.40 from INR 158,492.50 the previous day. FXStreet calculates Indian gold prices by converting international prices (USD/INR) to local currency and units.

Prices are updated daily based on market rates at publication. While gold serves as a store of value and medium of exchange throughout history, it is currently considered a safe-haven asset during turbulent times. Gold is also viewed as a hedge against inflation and depreciating currencies. Central banks, the largest gold holders, often diversify reserves during economic turmoil by purchasing gold to bolster perceived economic and currency strength.

In 2022, central banks added 1,136 tonnes of gold worth approximately $70 billion to their reserves, the highest yearly purchase since records began. Emerging economies like China, India, and Turkey are rapidly increasing their gold reserves. Gold has an inverse relationship with the US Dollar and US Treasuries, which are key reserve and safe-haven assets.

When the Dollar depreciates, gold prices typically rise, allowing investors and central banks to diversify assets in uncertain times. Gold also exhibits an inverse correlation with risk assets, with stock market rallies often weakening gold prices, while sell-offs in riskier markets favor the precious metal. The price of gold can fluctuate due to various factors, including geopolitical instability, recession fears, lower interest rates, and the US Dollar's behavior, as gold is priced in USD (XAU/USD).