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23/07/26
13
Gold Prices in India Stay Flat as Safe-Haven Demand Holds
Gold prices in India were little changed on Thursday, with domestic rates holding close to the previous session’s levels. According to market data, gold was priced at 12,810 rupees per gram, compared with 12,821 rupees on Wednesday. The metal also remained stable on a larger unit basis, trading at 149,412 rupees per tola versus 149,537 rupees a day earlier.
Local gold prices are derived from international spot prices and the dollar-rupee exchange rate, then converted into Indian units of measurement. As a result, the figures serve as a daily reference rather than a fixed market quote, and actual retail rates may differ slightly depending on location and dealer margins.
Gold continues to occupy a central place in financial markets because of its role as a store of value. Beyond its use in jewelry, the metal is widely regarded as a safe-haven asset, attracting demand during periods of market stress, inflationary pressure, or weakness in paper currencies. Its appeal is also tied to the fact that it is not issued by any government or central bank.
Central banks remain the largest holders of gold, using it as part of reserve management and as a buffer against economic or currency volatility. In recent years, several emerging-market central banks have added to their holdings, including institutions in China, India, and Turkey. According to World Gold Council data, official-sector purchases reached 1,136 tonnes in 2022, the highest annual total on record.
Gold also tends to move in the opposite direction of the US dollar and Treasury yields. A weaker dollar often supports the metal by making it cheaper for non-US buyers, while lower yields reduce the opportunity cost of holding a non-interest-bearing asset. By contrast, stronger risk appetite in equity markets can weigh on gold, while sharp declines in stocks or other risky assets usually support demand for the metal. Geopolitical tensions and recession fears can also trigger rapid gains.
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