Gold prices in India fell on Monday, based on FXStreet-compiled data. Gold was priced at INR 14,508.73 per gram, down from INR 14,676.50 on Friday.
Gold also dropped to INR 169,228.20 per tola from INR 171,183.80 per tola on Friday. Other listed prices were INR 145,088.70 for 10 grams and INR 451,272.40 per troy ounce.
FXStreet calculates Indian gold prices by converting international prices using USD/INR and local units. Rates are updated daily at the time of publication and are for reference only, since local prices may differ.
Central banks hold more gold than any other group. World Gold Council data says central banks added 1,136 tonnes of gold worth about $70 billion in 2022. That was the highest annual total on record.
Gold often moves in the opposite direction of the US Dollar and US Treasury yields. It can also move against risk assets like stocks. Key drivers include geopolitics, recession fears, interest rates, and the strength of the US Dollar, since gold is priced in dollars (XAU/USD).
Gold is pulling back, and this looks tied to recent US Dollar strength. The dollar index is up more than 1.5% over the past two weeks after a strong US jobs report for January 2026. This could be a tactical moment for derivatives traders as they plan their next move.
Prices are also under pressure from changing interest rate expectations. Markets are now reducing bets on a US Federal Reserve rate cut in the first half of the year. Higher rates usually hurt gold because it pays no yield, which can make long futures positions riskier in the near term.
Still, there is ongoing support from central banks. They kept buying heavily through 2025, adding more than 1,000 tonnes to global reserves. This demand can help put a floor under prices. Because of that, put options—or bets on a big drop—should be used with care.
Risk-on sentiment is also weighing on safe-haven demand. Global stock markets did well in January, which reduces interest in assets like gold. This pattern makes sense, but a sudden geopolitical shock could flip it quickly. Traders may want to use derivatives to hedge against that kind of surprise.
In India, the Rupee has been fairly steady against the dollar, so local prices have followed the global decline closely. With short-term pressure but long-term support, traders may look to options strategies that aim to benefit from volatility. These strategies can profit from a big move without needing to pick a direction in the weeks ahead.
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