Gold prices in India rose on Monday. A gram of gold now costs 12,044.49 Indian Rupees (INR), up from 12,006.87 INR. The price for a tola increased to 140,487.90 INR, from 140,045.70 INR. FXStreet regularly updates gold prices, converting international rates (USD/INR) to local currency. These prices serve as a reference; actual market rates may differ slightly.

Gold As A Safe Investment

Gold is traditionally viewed as a secure investment and store of value, especially in uncertain times. Central banks are major buyers, diversifying their reserves to support their currencies. Gold prices are affected by geopolitical issues and economic factors. Typically, prices go up when interest rates fall and the US Dollar weakens. In 2022, central banks globally added 1,136 tonnes of gold to their reserves. Gold tends to rise when the US Dollar and Treasury assets decline. In times of economic uncertainty or stock market drops, gold is seen as a stable choice. Today’s rise in gold prices illustrates its relationship with the US Dollar. The Dollar Index (DXY) recently fell below 102 for the first time since July, following disappointing US retail sales figures. This weakness in the dollar boosts the appeal of dollar-denominated assets like gold.

Market Sentiment And Geopolitical Influence

Market sentiment is changing, influenced by expectations about future Federal Reserve policies. Previously, the Fed maintained stable rates through 2024 and most of 2025. However, recent data showing a decline in manufacturing has traders anticipating rate cuts possible in early 2026. As a non-yielding asset, gold becomes more appealing when interest rates decrease. Geopolitical tensions are also enhancing gold’s appeal as a safe haven. Ongoing trade issues between the US and China, especially related to semiconductor and rare earth mineral exports, increase investor caution about riskier assets like stocks. We saw a similar trend toward safety during trade disputes back in 2018-2019, which supported gold prices then too. Another factor is the strong demand from central banks, which maintains a solid price foundation. Following record purchases in 2022, the World Gold Council’s 2024 report confirmed that central banks in emerging markets continued to build their reserves at an unprecedented rate. This consistent buying protects against significant price drops. For derivative traders, this market environment suggests looking for strategies that can profit from upward trends and possible volatility. Buying call options on gold futures or gold-backed ETFs may be a good way to gain from potential price increases while managing risk. Given the market’s focus on the Federal Reserve’s future actions, contracts expiring between March and June 2026 could be of interest. Create your live VT Markets account and start trading now.

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