Gold prices in India fell on Friday, based on FXStreet data. Gold was priced at INR 14,169.53 per gram, down from INR 14,271.88 on Thursday.
Gold also declined to INR 165,273.20 per tola from INR 166,464.40 a day earlier. Other reference prices were INR 141,695.20 for 10 grams and INR 440,722.10 per troy ounce.
How FXStreet Calculates Indian Gold Prices
FXStreet derives Indian gold prices by converting international prices using USD/INR and applying local units. The figures are updated daily using market rates at the time of publication, and local prices may vary slightly.
Central banks are the largest holders of gold. World Gold Council data shows central banks added 1,136 tonnes of gold worth about $70 billion to reserves in 2022, the highest annual purchase since records began.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to risk assets. Price drivers include geopolitical events, recession fears, interest rates, and shifts in the US Dollar because gold is priced in dollars (XAU/USD).
We’re seeing a slight dip in gold prices today, but this should be viewed against the powerful rally we saw through late 2024 and most of 2025. This short-term softness provides an opportunity to evaluate the larger forces at play. The metal’s role as a safe haven remains its most important quality in the current uncertain economic climate.
Key Factors Shaping The Gold Outlook
A primary support for gold continues to be aggressive purchasing by central banks. Looking back, we know they collectively added over 1,000 tonnes in 2023 and continued their strong buying through 2025 with purchases well over 800 tonnes. This ongoing demand from official institutions signals a sustained effort to diversify reserves away from the US Dollar.
The major question for us is how the U.S. Federal Reserve will act in the second half of this year. After a long pause, where rates were held high to combat the stubborn inflation we saw in 2025, markets are now pricing in a potential rate cut before year-end as economic growth slows. Any pivot to lower rates would be very supportive for gold, as it reduces the appeal of holding yielding government bonds.
Ongoing geopolitical instability and the unpredictable nature of global trade relations are also providing a solid foundation for gold. Risk aversion remains elevated, and investors are continuing to allocate funds to assets that can protect wealth during turbulent times. This has kept a steady bid under the market, preventing any significant sell-offs.
Given this backdrop, traders should consider positioning for renewed upside in gold over the next several weeks. Implied volatility on gold options has been rising, suggesting the market is anticipating a move, which makes buying call options an attractive strategy to capture potential gains. This allows for participation in a rally while defining risk, should the economic outlook change unexpectedly.
