Gold prices in India rose on Monday, based on data from FXStreet. The price per gram increased to 12,203.55 Indian Rupees (INR) from 12,173.11 INR on Friday.

Gold Prices Update

The price per tola went up to INR 142,341.80, rising from INR 141,984.80 from the previous trading day. FXStreet adjusts international gold prices to INR and updates them daily depending on market rates. Gold is valued as a reliable investment, especially during uncertain times. People often buy it to protect against inflation and currency loss. Central banks are significant holders of gold. In 2022, central banks acquired 1,136 tonnes of gold, worth about $70 billion, according to the World Gold Council. Nations like China, India, and Turkey have notably increased their gold reserves. Gold and the US Dollar often move in opposite directions. A weaker dollar usually leads to higher gold prices, while a strong stock market can push gold prices down. Other factors, like geopolitical tensions and interest rates, also affect gold’s value. Today’s slight rise in gold prices fits into a larger trend that we’ve noticed over recent weeks, driven by economic changes. The US Dollar Index recently dropped below 102, which is significant given its strength in 2025. This reflects the typical relationship where a weaker dollar boosts gold prices.

Market Speculation and New Trends

The market is now focusing on what the US Federal Reserve will do next, with growing expectations of a rate cut in the first half of 2026. After a series of aggressive rate hikes in 2022-2023, and a pause in 2024 and 2025, the latest inflation data has cooled sufficiently to spark this speculation. Lower interest rates make holding non-yielding assets like gold less costly. We see this sentiment in the options market, where more call options are being bought for the first and second quarters of 2026. Implied volatility is increasing from earlier lows, suggesting traders anticipate a breakout rather than stable prices. This scenario benefits strategies that can capitalize on a sharp price increase in the coming months. The demand for gold remains strong, providing solid price support. Central banks are still purchasing gold at a high rate, continuing the record levels from 2022. Recent figures from the World Gold Council for the third quarter of 2025 show that emerging market banks are the primary buyers, moving away from dollar-based assets. Furthermore, ongoing geopolitical tensions are crucial in maintaining gold’s status as a safe-haven investment. Any sudden escalations in global trade issues or regional conflicts could lead to increased demand for gold. We’ve seen this repeatedly in the early 2020s, and it remains an important factor for hedging strategies. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now