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

In India, gold prices remained relatively stable on Tuesday, according to data from FXStreet. On this day, the price of gold was 13,262.34 INR per gram, which was close to the INR 13,249.12 recorded on the previous day. The price of gold per tola, which is approximately 11.66 grams, stayed steady at INR 154,689.50, mirroring the previous day's rate of INR 154,535.10.

FXStreet calculates these prices by converting international rates (USD/INR) to Indian Rupees and adjusting for local measurements. These figures are updated daily based on market rates at the time of publication. Although gold is often used as a store of value and medium of exchange, it currently serves as a safe-haven asset during uncertain times.

This precious metal is also considered a hedge against inflation and the decline of currencies, as it's not tied to a particular issuer or government. Central banks, which are the largest holders of gold, diversify their reserves by purchasing more of the precious metal during times of economic instability. In 2022, central banks from emerging economies like China, India, and Turkey added 1,136 tonnes of gold to their reserves, a record-high purchase worth approximately $70 billion.

Gold has an inverse relationship with the US Dollar and US Treasuries, both of which are major safe-haven assets. When the dollar depreciates, gold prices typically increase, providing investors and central banks with alternative assets to diversify during turbulent times. Gold also has an inverse correlation with risk assets. When stock markets rally, gold prices usually decline, while sell-offs in riskier markets often favor the precious metal.

Various factors can influence gold prices, including geopolitical tensions, fears of deep recession, and interest rate fluctuations. As a non-yielding asset, gold tends to increase when interest rates are low and decrease when rates are higher. Most movements, however, depend on the US Dollar's performance since gold is priced in dollars (XAU/USD).

A strong dollar usually keeps gold prices stable, whereas a weaker dollar often drives gold prices higher.