Gold prices in India stayed stable on Wednesday, based on FXStreet data. The price was 12,972.05 INR per gram, slightly lower than Tuesday’s 12,972.65 INR. For one tola, the price was 151,303.40 INR, almost unchanged from the previous day’s 151,310.50 INR. FXStreet adapts international prices to the local currency for accuracy. These figures are updated daily and serve as a reference, noting that local variations may occur.

Gold As A Safe Asset

Gold has always been a reliable store of value, often seen as a safe asset during uncertain times. Central banks, especially in emerging markets, buy large amounts. In 2022, they purchased 1,136 tonnes worth around $70 billion, setting a record. Gold prices typically go up when the US Dollar and Treasuries go down. Geopolitical issues and interest rates also impact gold’s value. Prices generally rise when interest rates fall but can drop when rates go up, largely influenced by the strength of the USD. All investment decisions should be made with thorough research, as these activities carry risks. FXStreet is not responsible for any errors or omissions, and the information provided is not meant as investment advice. With gold prices steady around ₹12,972 per gram today, it’s important to consider what factors might influence prices in the coming weeks. The recent Federal Reserve meeting in mid-December 2025 hinted at possible rate cuts in early 2026, which is important because gold, as a non-yielding asset, typically does well when interest rates are expected to drop.

Outlook For The US Dollar And Gold

This outlook pressures the US Dollar, which has an opposite relationship with gold. The Dollar Index (DXY) has fallen below 98, a stark contrast to highs seen in 2024. A weaker dollar generally makes gold cheaper for international buyers, increasing demand. For derivative traders, this dollar weakness provides a promising environment for gold as we head into the new year. We also look at the ongoing demand from central banks. The latest World Gold Council data for Q3 2025 shows they have continued the strong buying trend seen since 2022. Even though the November 2025 US CPI report showed inflation decreasing to 2.8%, it still exceeds targets, reinforcing gold’s role as a hedge against inflation. This combination of institutional buying and ongoing inflation worries creates solid support for gold prices. Given the current stability, now might be the right time to build positions for a potential price increase early next year. Although the market may be quiet over the holidays, the conditions suggest higher prices are likely. Traders could consider strategies like buying call options for February or March 2026 to benefit from this anticipated move while managing risk. Create your live VT Markets account and start trading now.

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