Gold prices in India went up on Monday, according to FXStreet. The cost per gram increased to 13,641.35 Indian Rupees, up from 13,404.41 INR on Friday. For one tola, the price rose to 159,104.20 INR, compared to 156,346.40 INR earlier. Gold is priced in different units, with a troy ounce valued at 424,293.70 INR. FXStreet adjusts international prices to fit Indian standards, updating these prices daily based on market rates. Remember, these prices are for reference, and local market rates may vary slightly.

Gold As A Safe Haven

Gold is seen as a safe investment during tough economic times. It helps protect against inflation and unstable currencies. Central banks hold a lot of gold to boost their economies. In 2022, they bought 1,136 tonnes of gold, worth about $70 billion. Countries like China, India, and Turkey are growing their gold reserves. Gold prices are affected by political instability, interest rates, and the US Dollar. When the US Dollar falls, gold prices usually rise. On the other hand, strong stock markets can lower gold prices due to gold’s opposite relationship with the Dollar and risk assets. With gold reaching new highs, we observe a significant move toward safety amid geopolitical tensions. This uncertainty makes a strong case for buying call options on gold ETFs or futures, allowing investors to benefit from rising prices while controlling their risk. This trend is supported by consistent buying we saw last year. In 2025, central banks continued their strong buying, adding over 950 tonnes to global reserves, reflecting their distrust in fiat currencies. This ongoing demand indicates that the current price surge isn’t just a short-term panic.

Impact Of The US Dollar And Interest Rates

The US Dollar’s decline is adding a significant boost to gold. As the dollar weakens, consider buying call options on the Euro or British Pound. A weaker dollar makes gold cheaper for international buyers, potentially driving its price higher. With stock markets pulling back, it’s wise to protect against further declines. We suggest buying put options on major indices like the S&P 500 as a smart hedge. This tactic will gain value if the risk-off sentiment increases and stock prices fall further. Market anxiety is growing, shown by rising volatility. The VIX, which measures market fear, has climbed above 25, a level not seen consistently since the banking issues of 2025. Traders might want to explore long volatility positions via VIX futures or options, as these tend to rise when market unrest grows. This situation is complicated by uncertainty around interest rates, especially after the Federal Reserve paused its rate cuts late in 2025. Since gold doesn’t provide yield, any uncertainty about future cuts makes it a more appealing option. This backdrop supports a positive outlook for precious metals in the coming weeks. Create your live VT Markets account and start trading now.

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