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31/07/26
9
Gold Prices Ease in India as Global Backdrop Softens
Gold prices eased in India on Friday as the local market reflected a softer international backdrop and currency adjustments. According to the latest pricing, gold was valued at 12,501 rupees per gram, down from 12,578 rupees on Thursday. The price per tola also declined, falling to 145,809 rupees from 146,713 rupees the previous day.
On a broader basis, 10 grams of gold were priced at 125,009 rupees, while a troy ounce stood at 388,815 rupees. These figures are derived from global spot prices translated into Indian rupees and local units, so actual retail rates may differ slightly depending on taxes, premiums and regional market conditions.
Gold continues to occupy a central place in global finance. Beyond its use in jewelry, the metal is widely treated as a store of value and a defensive asset during periods of economic stress. Investors often turn to gold when markets become volatile, inflation remains elevated or confidence in paper currencies weakens.
Central banks remain the largest holders of gold and have been adding to reserves in recent years. Their purchases are typically intended to strengthen reserve diversification and support confidence in financial stability. Emerging-market central banks, including those in Asia and the Middle East, have been especially active buyers as they seek to reduce reliance on a narrow range of reserve assets.
Gold tends to move in the opposite direction of the US dollar and US Treasury yields. A weaker dollar often supports the metal by making it cheaper for buyers using other currencies, while rising yields can pressure gold because the metal does not generate income. It also tends to benefit when investors reduce exposure to equities and other risk-sensitive assets.
Geopolitical tensions, recession concerns and shifts in interest-rate expectations can all influence the metal’s direction. For now, the latest decline in India reflects a modest cooling in prices rather than a broader change in gold’s longer-term role as a defensive asset.
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