Gold prices in India fell on Friday, according to FXStreet data. Gold now costs 13,405.44 Indian Rupees (INR) per gram, down from INR 13,426.52 the day before. The price per tola dropped to INR 156,358.50 from INR 156,604.30. FXStreet adjusts international Gold prices into INR by considering currency changes and market conditions. These daily updates provide reference points, but local rates may vary slightly.

Gold as a Safe Asset

Gold is regarded as a stable form of value and a means of exchange. Beyond jewelry, many see Gold as a safe investment during tough economic times, shielding against inflation and currency loss. Central banks are significant buyers of Gold. They buy Gold to support their currencies and improve their economic standing. In 2022, central banks acquired 1,136 tonnes, totaling about $70 billion, which set a new record. Gold prices typically move in the opposite direction of the US Dollar and US Treasuries. When the Dollar weakens, Gold prices often rise; however, strong stock market performances can bring Gold prices down. Various factors like geopolitical events and interest rates can sway Gold prices. A strong Dollar stabilizes markets, while a weak Dollar tends to lift Gold prices. Today’s small price dip could be a good opportunity to buy rather than a sign of a downward trend. The reasons for owning Gold seem to be strengthening. This slight decline is likely just background noise before a new upward trend begins.

Market Environment and Strategy

Interest rates play a big role in our strategy for the upcoming weeks. After high rates throughout 2024 and 2025, the US Federal Reserve has hinted at easing its policies later this year. Lower rates can make bonds less appealing, making non-yielding assets like Gold more attractive. Additionally, the US Dollar has started to weaken in early 2026, which typically supports Gold prices. December 2025 inflation reports showed that while price increases have lessened from their 2023 highs, inflation remains stubbornly above targets in both the US and Europe. This situation reinforces Gold’s traditional role as a hedge against currency depreciation. We must also note the strong and steady demand from central banks, which continued throughout 2025. Following the record purchases in 2022, the World Gold Council’s latest Q4 2025 data revealed that emerging market banks added another 230 tonnes to their reserves. This institutional buying helps create a solid price floor and reduces the risk of declines. With stock markets seeming fully valued after last year’s strong performance, diversifying into safe-haven assets is a wise choice. Therefore, traders should consider using this price drop as a chance to build long positions through call options or futures contracts. The current conditions suggest that any significant price dips are unlikely to persist for long. Create your live VT Markets account and start trading now.

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