Gold prices in India saw an increase on Monday. The price per gram rose to 14,970.54 Indian Rupees (INR) from 14,713.91 INR on Friday. The price per tola also increased to 174,617.60 INR, compared to 171,620.10 INR at the end of last week. FXStreet figures these prices by adjusting international rates for local currency and measurement units. The price per Troy Ounce hit 465,658.30 INR, with updates reflecting market conditions at the time of publication.

Gold As A Safe Haven

Gold is often seen as a safe haven, shielding investors from inflation and currency value drops. In 2022, central banks from emerging economies like China, India, and Turkey bought 1,136 tonnes of gold, worth around $70 billion, to strengthen their reserves. Gold tends to move in the opposite direction of the US Dollar and riskier assets. A weaker Dollar or stock market dips usually lead to higher gold prices. Events such as geopolitical tensions, fears of economic downturns, and interest rate changes can also impact gold prices. Typically, lower interest rates support gold, while higher rates can push its value down. The recent rise in gold prices above 14,970 INR per gram is significant. It signals growing concerns in broader markets, indicating that we may see a continuous upward trend. Keeping an eye on what drives this strength in the upcoming weeks is wise. Looking back, inflation data from late 2025 was lower than expected. This has led to speculation that the US Federal Reserve might start cutting interest rates by mid-2026. Lower rates reduce the appeal of holding assets like gold that do not earn income, making gold more attractive. This potential change in monetary policy is a big boost for gold prices. Central bank purchases also create solid support for gold prices, limiting possible declines. This trend continued heavily in 2025, with global central banks adding over 800 tonnes to their holdings, following a record pace in previous years. This ongoing demand from major players is a powerful factor that must be noted.

Global Economic Influence

At the same time, signs of a slowing global economy increase gold’s attractiveness as a safe haven. For example, manufacturing PMI data from late 2025 indicated reduced industrial activity in North America and Europe. Ongoing geopolitical issues in key areas worldwide are adding to investors’ search for safety. Given these factors, consider buying call options to gain upside while limiting risk. Look for contracts expiring in March or April 2026, targeting strike prices just above the current market level. If implied volatility stays low, it offers a cost-effective way to enter these bullish positions. However, we need to monitor the US Dollar closely, as it is a key factor. The recent decline in the Dollar Index (DXY) from its highs at the end of 2025 has certainly benefited gold. Any unexpected change in the dollar’s trend, possibly due to a surprisingly strong economic report, could create challenges. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now