Gold prices rose in India on Tuesday, based on FXStreet data. Gold was priced at INR 13,947.14 per gram, up from INR 13,787.85 on Monday.
The price per tola increased to INR 162,679.20 from INR 160,818.70 a day earlier. Other listed prices were INR 139,473.60 for 10 grams and INR 433,805.00 for a troy ounce.
How FXStreet Calculates India Gold Prices
FXStreet derives India’s gold prices by converting international prices using USD/INR and local units. The figures are updated daily at publication time, and local market rates may vary slightly.
Central banks are the largest holders of gold. They added 1,136 tonnes worth about $70 billion in 2022, according to the World Gold Council, the highest annual total since records began.
Gold often moves in the opposite direction to the US Dollar and US Treasuries, and it can also move against risk assets. Its price may shift with geopolitical risks, recession concerns, interest rates, and changes in the US Dollar because gold is priced in dollars (XAU/USD).
With gold showing upward momentum as of late March 2026, we are closely watching its inverse relationship with the US Dollar. The Dollar Index has recently dipped below 103, providing a tailwind for the precious metal. This dynamic is a key focus for positioning in the coming weeks.
Key Market Drivers To Watch
Much of this price action hinges on expectations for future interest rate policy, as gold is a non-yielding asset. After a period of restrictive rates throughout 2025, the market is now pricing in potential rate cuts later this year, making gold more attractive. The upcoming central bank meetings in the next quarter will be critical events.
We’ve also seen persistent support from central banks, which have continued their accumulation trend. Data shows that central banks added over 200 tonnes to their reserves in the first quarter of 2026, signaling a continued strategic shift. This strong underlying demand provides a solid floor for prices.
For derivative traders, the current environment suggests that implied volatility may be undervalued. The uncertainty surrounding the timing of the first rate cut could lead to significant price swings in the coming weeks. Therefore, strategies that benefit from rising volatility, such as long straddles or strangles on gold ETFs, could be considered.
Geopolitical tensions also remain a key factor supporting gold’s role as a safe-haven asset. Any escalation in global conflicts could see a rapid flight to safety, pushing prices higher irrespective of interest rate moves. We are monitoring these risks as a potential catalyst for a sharp breakout.
