Gold prices in India have decreased, according to FXStreet. The new rate is 12,949.15 INR per gram, down from the previous day’s 13,024.56 INR. For those measuring in tolas, the price fell to 151,037.20 INR from 151,931.10 INR. FXStreet updates gold prices daily, reflecting changes in the USD/INR exchange rate.

The Role Of Gold

Gold has long been a safe haven and a way to trade. It’s considered a protective asset during uncertain times, especially against inflation and currency decline. Central banks primarily keep gold to boost currency stability. In 2022, they bought 1,136 tonnes of gold for about $70 billion—the highest amount ever purchased. Gold prices often move inversely to the US Dollar and US Treasuries. When the Dollar is strong, gold prices typically drop. However, when the Dollar weakens, gold prices usually rise. Various factors, including geopolitical issues, can affect gold prices. Low interest rates generally push gold prices up, while high rates tend to lower them.

Market Reactions

Gold prices are experiencing a slight drop today, which is expected after climbing past $4,500 recently. This rise was largely due to geopolitical tensions from the US’s actions in Venezuela. The current dip seems to be ordinary profit-taking, as the market pauses ahead of important economic reports from the United States. Everyone is watching the upcoming US ADP employment and ISM Services reports. These numbers will play a crucial role in shaping how the market views the strength of the US economy and possible actions by the Federal Reserve. A weak report could weaken the US Dollar and cause gold prices to rise again, while strong data might prolong the current pullback. Support for gold remains solid, especially given central banks’ activities. This trend has been strong since 2025, as central banks added over 1,000 tonnes to global reserves for three consecutive years. Such steady demand creates a strong foundation for gold prices, protecting them from major declines. For traders dealing in derivatives, this situation sets up options for volatility in the coming weeks. In light of the uncertainty, buying straddles or strangles before the US data releases might be a smart way to profit from large price movements in either direction. On the other hand, if job numbers are weak, buying call options could be a good way to take advantage of a potential rally. Looking back, gold thrived during the inflation concerns of 2024 and 2025. With the December 2025 inflation rate at 3.1%, the market is sensitive to signs of economic slowdown that could lead to rate cuts. We should also monitor recent outflows from gold ETFs, which surpassed $1.5 billion in the last quarter of 2025. A reversal in this trend might indicate a return to bullish momentum. Create your live VT Markets account and start trading now.

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