Gold prices in India fell on Thursday, per FXStreet data. The price was INR 13,381.41 per gram, down from INR 13,493.33 the day before. The cost per tola decreased to INR 156,078.80, compared to INR 157,383.50 the previous day. FXStreet adjusts international prices to local currency and units, providing daily updates based on current market rates.

Gold As A Safe Haven Asset

Gold is often seen as a safe haven investment, especially during uncertain times. It serves as a hedge against inflation. Central banks, particularly in emerging markets like China, India, and Turkey, buy large amounts of gold to diversify their reserves. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. Factors like geopolitical tensions, fears of recession, and interest rates can affect prices. Changes often depend on the strength or weakness of the US Dollar. FXStreet provides this data for reference and advises doing thorough personal research before making investment decisions. They emphasize that investing in open markets comes with risks, including possible total loss, which should be considered in your investment strategies. Today, gold has slightly pulled back. However, it’s still close to the $4,600 per ounce level. This retreat seems tied to recent news about reduced tensions with Iran, lowering the demand for safe-haven assets. The market’s focus has shifted from aggressive buying to a more cautious approach.

Impact Of Federal Reserve Decisions

The Federal Reserve’s choice to hold off on interest rate hikes is crucial for the coming weeks. While high rates make holding non-yielding gold costly, the pause indicates that the aggressive tightening cycle we saw in 2025 may be ending. This creates a tug-of-war, as a strong US dollar, driven by unexpectedly positive economic data, keeps gold prices from rising. This mixed environment suggests increasing volatility. Traders might find opportunities using options strategies, like straddles, to profit from significant price changes in either direction without committing to a specific outcome. Selling covered calls against existing long positions is another way to earn income, especially if we expect prices to stay below recent record highs. Additionally, there is strong support from central banks that continued their historic buying throughout 2025. Last year, the World Gold Council reported that emerging market banks added 955 tonnes to their reserves, viewing high prices as a necessary long-term protection. This institutional demand provides solid support, implying that significant price drops may be brief. Create your live VT Markets account and start trading now.

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