Gold prices in India have increased, as reported by FXStreet. On Friday, the price reached 12,650.78 Indian Rupees (INR) per gram, compared to 12,490.55 INR on Thursday. The price per tola also rose to 147,556.90 INR from 145,687.30 INR.<\/p>\n
Gold prices are calculated by FXStreet using international prices and local currency rates. These prices are updated daily and may slightly differ from local rates.<\/p>\n
Gold has long been valued as both a medium of exchange and a store of value. It is often viewed as a safe-haven asset, especially during unstable periods. Additionally, gold serves as a hedge against inflation and depreciating currencies.<\/p>\n
Central banks are major gold purchasers, adding 1,136 tonnes in 2022, the largest annual purchase on record. Countries like China, India, and Turkey are increasing their gold reserves.<\/p>\n
Gold typically has an inverse relationship with the US Dollar and Treasuries. It tends to rise when the Dollar depreciates or when other risk assets decline. Various factors, including geopolitical instability and interest rates, influence its price. Generally, a stronger Dollar controls gold prices, while a weaker Dollar often results in price increases.<\/p>\n
The recent rise in gold prices to over 12,650 INR per gram reflects a significant shift in market expectations as we begin 2026. We are seeing growing conviction that the Federal Reserve will pause the aggressive rate-hiking cycle that defined the second half of 2025. This makes holding a non-yielding asset like gold more attractive.<\/p>\n
This sentiment is supported by the recent December 2025 jobs report, which showed payrolls growing by only 95,000, well below forecasts and a sharp drop from mid-2025 levels. We also saw the latest ISM Manufacturing PMI dip further into contractionary territory at 46.5, fueling recessionary fears. These signs of a cooling economy increase bets on a weaker US dollar in the coming weeks, which is typically bullish for gold.<\/p>\n
We must also consider the powerful and consistent demand from central banks, which provides a strong floor for prices. Following the record purchases we saw throughout 2022 and 2023, data from the World Gold Council for 2025 showed that central banks added another 950 tonnes to official reserves. This ongoing diversification by emerging market banks continues to be a major supportive factor.<\/p>\n
In this environment, we believe traders should consider establishing bullish positions using derivatives for the coming weeks. Buying call options on gold futures or major gold ETFs for February and March expirations offers a defined-risk way to capitalize on potential upside momentum. This strategy provides leveraged exposure if the expected economic slowdown materializes.<\/p>\n
We should be mindful that implied volatility has crept higher, making options more expensive than they were in late 2025. This reflects the market’s uncertainty about the timing and depth of any potential recession. Therefore, using bull call spreads to reduce the initial cost of entry could be a prudent strategy to gain long exposure.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold prices in India rose again, reflecting global trends and currency values, reaching new highs per gram.<\/p>\n","protected":false},"author":62,"featured_media":16975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38089","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=38089"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38089\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16975"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}