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

India's gold prices fell on Thursday, according to data from FXStreet. The cost of gold per gram dropped to 12,358.95 Indian Rupees (INR), a decrease from INR 12,453.72 the previous day. The price per tola, which is roughly 11.663 grams, went down to INR 144,157.90 from INR 145,257.80 a day earlier. FXStreet calculates these prices by converting international rates into local currency and units, updating them daily with the latest market rates.

Gold, a historical store of value and medium of exchange, is now often seen as a safe-haven asset during turbulent times. Unlike many investments, its value isn't tied to any specific issuer or government, making it a potential hedge against inflation and currency depreciation. Central banks, which hold the largest amounts of gold, increase their reserves during financial instability to bolster the perceived strength of their economies and currencies.

In 2022, central banks added 1,136 tonnes of gold, worth approximately $70 billion, to their reserves, the highest yearly purchase since records began. Gold has a negative relationship with the US Dollar and US Treasuries, which are also key reserve and safe-haven assets. When the Dollar depreciates, gold typically rises, allowing investors and central banks to diversify their assets.

Additionally, gold is inversely correlated with risk assets – a bull market in stocks usually depresses gold prices, while sell-offs in riskier markets tend to lift gold. The gold price is influenced by a range of factors, including geopolitical instability, lower interest rates, and the behavior of the US Dollar, as it is priced in dollars.