Gold prices increased in India on Monday, with the cost per gram rising to 14,970.54 Indian Rupees (INR) from 14,713.91 INR on Friday. The price per tola also went up to 174,617.60 INR, compared to 171,620.10 INR at the end of the previous week.
FXStreet calculates these prices by adjusting international rates to local currency and measurement units. The price per Troy Ounce reached 465,658.30 INR, with updates reflecting market conditions at the time of publication.
Gold As A Safe Haven
Gold is traditionally viewed as a safe-haven asset, protecting against inflation and currency depreciation. Central banks, especially from emerging economies like China, India, and Turkey, bolstered their reserves, purchasing 1,136 tonnes valued at around $70 billion in 2022.
Gold has an inverse relationship with the US Dollar and risk assets. A weaker Dollar or stock market sell-offs typically elevate Gold prices. Influencing factors for Gold’s price include geopolitical instability, economic recession fears, and interest rate trends. Lower interest rates tend to favour Gold, while higher rates may suppress its value.
The recent rise in gold prices to over 14,970 INR per gram is a notable signal for us. This move reflects a growing unease in the broader markets, suggesting this could be the beginning of a sustained upward trend. We should therefore pay close attention to the factors supporting this strength in the coming weeks.
Looking back, inflation data from the final quarter of 2025 cooled more than expected, which is increasing speculation that the US Federal Reserve will begin cutting interest rates by mid-year. Lower interest rates reduce the opportunity cost of holding a non-yielding asset like gold, making it more attractive. This fundamental shift in monetary policy expectations is a significant tailwind for bullion.
Central bank buying also provides a strong floor under the price, limiting potential downsides. We saw this trend continue aggressively through 2025, with global central banks adding over 800 tonnes to their reserves, following the record-breaking pace set in previous years. This consistent demand from major players is a powerful bullish factor that cannot be ignored.
Global Economic Influence
At the same time, we are seeing signs of a slowing global economy, which increases gold’s appeal as a safe haven. For example, manufacturing PMI figures from late 2025 consistently pointed to a slowdown in industrial activity across North America and Europe. Persistent geopolitical tensions in key global regions are only adding to this flight to safety.
Considering these factors, we should look at buying call options to gain upside exposure with limited risk. Look at contracts expiring in March or April 2026, targeting strike prices slightly above the current market level. If implied volatility remains at the current low levels, it presents a cost-effective entry point for these bullish positions.
However, we must keep a close watch on the US Dollar, as it remains a key variable. The recent downtrend in the Dollar Index (DXY) from its late 2025 highs has certainly helped gold. Any unexpected reversal in the dollar’s direction, perhaps driven by a surprisingly strong economic report, could create headwinds.
