Gold prices in India fell on Thursday, according to FXStreet. The price per gram decreased to 12,211.23 INR from 12,267.11 INR. The price per tola dropped to 142,429.30 INR from 143,081.10 INR. FXStreet updates gold prices every day, reflecting market rates and adjusting international prices to the Indian Rupee. These prices are for reference only, as local rates may vary slightly.

Gold As A Safe Haven

Gold has always been valued as a reliable asset and a way to trade. It’s often seen as a safe haven, a way to protect against inflation and falling currencies. Central banks are key players in gold investment, purchasing 1,136 tonnes in 2022, the highest amount in a single year. Countries like China, India, and Turkey are quickly building their gold reserves. Gold often acts oppositely to the US Dollar and US Treasuries. When interest rates are low, gold prices usually rise; a strong Dollar can keep prices down. Factors that affect gold prices include world instability and economic conditions. Gold is commonly priced in dollars (XAU/USD), so changes in exchange rates can greatly impact its value. The slight drop in gold prices we see today is likely just routine market fluctuations. We believe this is a minor change and not the start of a new trend. Traders should pay attention to broader economic signals in the coming weeks that might influence prices into the new year.

Supportive Factors For Gold Prices

Demand from central banks continues to support gold prices, creating a strong base. The record purchases in 2022 and 2023 show a consistent trend of buying from emerging markets. According to the World Gold Council’s latest data for Q3 2025, central banks added another 250 tonnes to their reserves. We are closely monitoring the US Federal Reserve’s position on interest rates. The latest inflation report from November 2025 showed a slight decline to 2.9%, increasing market expectations for a rate cut in early 2026. As gold does not yield interest, it becomes more appealing when expectations for rates are lowered. This is closely linked to the US Dollar, which moves inversely to gold. A weaker Dollar, often resulting from expectations of lower interest rates, can lead to higher gold prices. Any upcoming data that suggests a more dovish stance from the Fed could positively impact gold prices. With uncertainty about when the Fed might adjust rates, we expect increased market volatility. This environment could benefit traders using options to speculate on significant price movements due to key economic data releases. Buying call options could offer a defined-risk strategy to take advantage of potential price increases from a dovish policy shift. Create your live VT Markets account and start trading now.

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