Gold prices in India increased on Monday. Data from FXStreet shows that the price per gram reached 12,658.96 Indian Rupees (INR), up from 12,499.52 INR on Friday. The price per tola also rose from 145,791.90 INR to 147,651.60 INR. FXStreet calculates India’s gold prices by adjusting international prices to local currency and units. Daily updates reflect the market rates at the time, though local prices may vary slightly.

Gold As A Safe Haven

Gold has always been a valued asset, used as a store of value and a medium of exchange. Today, it is viewed as a safe-haven asset, especially during economic uncertainties, and serves as a hedge against inflation. Central banks are the biggest buyers of gold as they seek to stabilize currencies in tough times. In 2022, they added 1,136 tonnes of gold, valued at around $70 billion, to their reserves. Nations like China, India, and Turkey are quickly increasing their gold holdings. Gold prices tend to move in the opposite direction of the US Dollar and stock markets. Changes in price can occur due to geopolitical and economic factors. A strong US Dollar can limit gold prices, while a weak Dollar often leads to price increases. The recent rise in gold prices is part of a larger upward trend this quarter. Market expectations suggest that the US Federal Reserve may start cutting interest rates in the first half of 2026. Throughout 2025, any indication of lower rates has typically boosted this non-yielding asset.

Central Bank Activity And Market Dynamics

It’s important to note the continued purchasing from central banks, which supports gold prices. Recently, central banks around the world added 337 tonnes to their reserves in the third quarter of 2025. This continues the aggressive buying trend seen in 2022 and 2023, indicating that major global players see long-term value in gold. The recent weakness of the US Dollar also helps gold prices. The Dollar Index (DXY) has dropped nearly 2% over the last month as traders anticipate future rate cuts, driven by the November 2025 inflation report that showed the Consumer Price Index easing to 3.1%. While the Dollar remains weak, gold priced in dollars is likely to climb more easily. For those trading derivatives, this market environment suggests that buying call options could be a smart strategy for capturing further gains. Given the potential for short-term pullbacks, considering options that expire in late Q1 2026 allows time for the rate-cut narrative to unfold. We could also think about bull call spreads to manage risk while positioning for a steady increase. However, we need to stay alert for any signs that the Federal Reserve may adopt a more hawkish stance. A stronger-than-expected economic report or a surprise rise in the next inflation reading could quickly reverse the dollar’s decline and put pressure on gold. This makes holding long positions without a risk management strategy, like stop-losses on futures or using spreads, particularly risky. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now