Gold prices rose in India on Thursday, based on FXStreet data. Gold was priced at INR 14,538.29 per gram, up from INR 14,433.66 on Wednesday.
The price per tola increased to INR 169,571.70 from INR 168,351.40 a day earlier. Other listed rates were INR 145,382.80 for 10 grams and INR 452,191.60 per troy ounce.
How FXStreet Calculates Indian Gold Prices
FXStreet calculates Indian gold prices by converting international prices using USD/INR into local units. The figures are updated daily using market rates at the time of publication, and local shop rates may differ slightly.
Central banks are the largest holders of gold and added 1,136 tonnes worth about $70 billion in 2022, according to the World Gold Council. This was the highest annual total since records began, with buying reported from emerging economies such as China, India and Turkey.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move against risk assets. Prices may change due to geopolitics, recession fears, interest rates, and changes in the US Dollar, because gold is priced in dollars (XAU/USD).
Gold prices are moving higher, now standing above 14,500 INR per gram, reflecting a classic inverse reaction to a softer US Dollar seen in early April. We view this as a signal that traders are seeking the relative safety of gold amid currency market jitters. This move reinforces the metal’s role as a hedge against depreciating currencies.
Market Outlook And Key Drivers
This trend is supported by strong institutional demand, as we have seen central banks continue their purchasing spree. Following the record acquisitions of the early 2020s, global central banks added over 950 tonnes to their reserves in 2025, with emerging markets leading the way. This sustained buying creates a solid price floor, especially as recent inflation data from both the US and Europe has remained stubbornly above the 2.5% target.
For derivative traders, the rise in implied volatility suggests the market is pricing in larger swings in the coming weeks. This environment makes buying call options an attractive strategy to capture further upside potential while defining risk. Alternatively, selling out-of-the-money puts could be considered to collect premium, capitalizing on the strong underlying support for the metal.
However, we must remain cautious about upcoming central bank communications from the Federal Reserve and the ECB. Any indication that interest rates will be held high for longer to combat inflation could create headwinds for a non-yielding asset like gold. We saw a similar dynamic back in the fourth quarter of 2024, when hawkish statements triggered a temporary but sharp 4% correction in gold prices.
The relationship with risk assets is also playing a key role, as the stock market rally we saw in the first quarter of 2026 appears to be losing steam. Traders are increasingly using gold futures contracts as a hedge against a potential pullback in equities. This defensive positioning could add another layer of support for gold if broader market sentiment turns negative.
