Gold prices in India are on the rise, according to FXStreet. On Friday, gold was priced at 12,650.78 Indian Rupees (INR) per gram, an increase from 12,490.55 INR the day before. The price per tola also climbed to 147,556.90 INR, up from 145,687.30 INR. FXStreet calculates gold prices based on global rates and local currency exchange rates. These prices are updated daily and might differ slightly from local rates.

Gold as a Safe Haven

Gold has been valued for both trade and saving purposes for a long time. It’s often seen as a safe asset during uncertain times. Gold can also act as a shield against inflation and weakening currencies. Central banks are big buyers of gold, adding 1,136 tonnes in 2022—making it the largest annual purchase ever. Countries like China, India, and Turkey are increasing their gold reserves. Gold prices usually move opposite to the US Dollar and Treasuries. When the Dollar weakens, gold prices tend to rise. Many factors can influence gold prices, such as geopolitical issues and interest rates. Generally, a strong Dollar keeps gold prices down, while a weak Dollar tends to push prices up. The recent jump in gold prices to over 12,650 INR per gram shows a shift in market expectations as we start 2026. There is growing belief that the Federal Reserve will pause its aggressive rate hikes from the second half of 2025. This makes holding gold, which doesn’t earn interest, more appealing.

Economic Indicators and Gold Strategy

This view is backed by the December 2025 jobs report, which revealed that job growth was only 95,000—much lower than expected and a significant drop from earlier in 2025. The latest ISM Manufacturing PMI also fell to 46.5, suggesting further economic slowdown and raising recession fears. These signs of a weakening economy increase speculation that the US dollar will weaken soon, which is typically positive for gold. We also need to note the strong and steady demand from central banks, providing a solid price floor. Following record purchases in 2022 and 2023, the World Gold Council reported that central banks added another 950 tonnes to their reserves in 2025. This ongoing diversification by emerging market banks continues to support gold prices. In this environment, traders may want to consider taking bullish positions through derivatives in the coming weeks. Buying call options on gold futures or major gold ETFs for February and March expiration dates is a way to potentially profit from rising prices while limiting risk. It’s important to note that implied volatility has increased, making options pricier than they were in late 2025. This spike reflects market uncertainty about when and how deeply any recession might occur. Therefore, employing bull call spreads can help reduce initial costs and allow for long exposure. Create your live VT Markets account and start trading now.

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