Gold prices rose in India on Thursday, according to FXStreet data. Gold was priced at INR 15,217.13 per gram, up from INR 15,092.72 on Wednesday.
The price per tola increased to INR 177,489.60 from INR 176,038.50 a day earlier. Other listed rates were INR 152,171.30 for 10 grams and INR 473,306.00 per troy ounce.
How FXStreet Calculates Indian Gold Prices
FXStreet derives Indian gold prices by converting international prices using USD/INR and applying local measurement units. The figures are updated daily at publication time and are provided as reference, with local rates possibly differing slightly.
Central banks are the largest holders of gold. They added 1,136 tonnes worth about $70 billion to reserves in 2022, according to the World Gold Council, the highest annual purchase since records began.
Gold often moves inversely to the US Dollar and US Treasuries. It can also move opposite to risk assets, and is influenced by interest rates, recession fears, and geopolitical instability.
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Key Drivers Traders Are Watching
We are seeing gold prices strengthen, which is consistent with its classic role as a hedge against uncertainty. This move is supported by a US Dollar that has softened from its highs seen over the past year. Derivative traders should note this inverse relationship as a key performance indicator moving forward.
The market is also reacting to expectations of lower interest rates from the US Federal Reserve later this year. Looking back, the aggressive rate hikes of 2023 and 2024 now seem to be ending, which makes holding a non-yielding asset like gold more attractive. Current CME FedWatch Tool data suggests a 70% probability of at least two rate cuts before 2027, a significant shift in policy.
We must also consider the persistent demand from central banks, which has continued since the record-breaking purchases we saw back in 2022. The World Gold Council confirmed that central banks collectively bought over 1,000 tonnes per year through both 2023 and 2024, and reports show this trend held through 2025. This provides a strong, structural floor for gold prices that cannot be ignored.
Furthermore, global economic growth has shown signs of slowing, with recent IMF forecasts revised downward for the second half of 2026. This potential for a slowdown, combined with ongoing geopolitical tensions, boosts gold’s safe-haven appeal. We saw how this played out in 2025 when equity markets became volatile, pushing investors towards the relative safety of gold.
Given these factors, traders might consider establishing long positions through futures contracts to capitalize on potential upward momentum. For those using options, buying call options or structuring bull call spreads could be a viable strategy to manage risk while betting on rising prices. We should watch for any increase in volatility, which would reflect growing market conviction in this upward trend.
