Gold prices in India rose on Thursday, with the metal trading at 14,538.29 Indian Rupees (INR) per gram, up from 14,433.66 INR a day earlier, according to market data. The price of one tola climbed to 169,571.70 INR from 168,351.40 INR on Wednesday.
On a 10-gram basis, gold was quoted at 145,382.80 INR, while a troy ounce was priced at 452,191.60 INR. These levels reflect international gold prices converted into INR and adjusted for India’s standard weight measures. Actual prices quoted by local dealers may vary slightly due to regional costs and market conditions.
How prices are set
The benchmark rates are derived from global XAU/USD prices translated into rupees at prevailing exchange rates. This methodology aligns domestic quotations with international market moves, providing a reference for traders and bullion dealers across India.
Gold’s role in the financial system
Gold continues to serve as both a medium of exchange and a store of value, retaining demand during periods of economic growth and contraction. Beyond jewellery, it is widely used as a safe-haven asset and as a hedge against inflation and currency weakness, especially when confidence in paper assets is under strain.
Central banks build reserves
World Gold Council data show central banks purchased 1,136 tonnes of gold in 2022, worth roughly 70 billion USD, the largest annual addition since records began. Central banks in China, India and Turkey were among the most active buyers, adding to their reserves as part of broader diversification away from traditional foreign exchange holdings.
Relationship with the dollar and yields
Gold generally trades inversely to the US dollar and US Treasury yields, both of which are seen as alternative safe havens. A weaker dollar tends to support gold by making it cheaper for holders of other currencies, while rising US yields increase the opportunity cost of holding non-yielding assets such as bullion.
Geopolitics, rates and the current backdrop
Geopolitical tensions and interest rate trends remain key drivers of gold’s trajectory. Lower borrowing costs usually favour gold, while a stronger dollar or higher interest rates can weigh on prices.
The present environment highlights this tension. Recent conflict in the Middle East has triggered waves of safe-haven demand, pushing gold higher. At the same time, higher energy prices stemming from the unrest are feeding inflation pressures, which can prompt central banks to keep policy tight for longer, limiting upside for the metal.
US Federal Reserve stance
In the United States, headline consumer price inflation accelerated to a two-year high of 3.3% in March. In response, the Federal Reserve has held the federal funds rate at a target range of 3.50% to 3.75% through its early 2026 meetings, signalling a prolonged period of restrictive policy.
This stance creates a headwind for gold and other non-yielding assets, as traders weigh the timing of any eventual rate cuts. The next policy decision is due at the end of April and will be closely watched for guidance on future moves.
RBI policy and India’s gold imports
In India, the Reserve Bank of India’s monetary policy committee kept the key repo rate unchanged at 5.25% at its April 6–8 meeting, maintaining a neutral stance amid a fragile global backdrop.
Despite higher prices, India’s gold imports for the fiscal year through February jumped 28.73% to 69 billion USD. The increase reflects both elevated global prices and strong demand from the domestic jewellery sector, which continues to underpin physical offtake.
Market volatility and futures reaction
Recent trading has been highly sensitive to geopolitical headlines. COMEX gold futures briefly surged above 4,830 USD per ounce following reports of a possible ceasefire in the Middle East, before retreating as the market reassessed the situation.
The swift two-way moves underscore how quickly new information is being absorbed, with the US dollar and Treasury yields adjusting in parallel as risk sentiment shifts.
What traders are watching next
For traders, the market remains finely balanced between conflicting economic signals. Evidence that inflation is becoming more entrenched could delay global easing cycles, pressuring gold. Conversely, any deterioration in diplomatic efforts or fresh geopolitical shocks would likely revive demand for gold’s traditional safe-haven role.
Over the coming weeks, attention is likely to focus on:
- energy prices, a key driver of the latest inflation uptick
- remarks from central bank officials for hints on the future path of rates
- physical demand in India ahead of Akshaya Tritiya on April 19, a festival that typically boosts gold buying and may provide additional support to local prices
Curious how macro trends shape assets beyond gold? Learn about investing in gold strategically alongside crypto in changing markets.
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