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14/05/26
18
Gold Prices Rise in India on Global Market Gains
Gold prices moved higher in India on Thursday, reflecting gains in the international market and a modest shift in local currency terms. The price of gold rose to 14,549 Indian rupees per gram from 14,484 rupees on Wednesday. On a larger retail measure, the metal increased to 169,695 rupees per tola from 168,933 rupees the previous day.
Local bullion prices are derived from global spot prices and the exchange rate between the US dollar and the Indian rupee. As a result, daily quotes can vary slightly from one market to another, and they are best viewed as reference levels rather than fixed local rates.
Gold remains one of the world’s most closely watched assets because of its long-standing role as a store of value. Beyond its use in jewelry, it is often treated as a defensive holding during periods of financial stress, policy uncertainty, or elevated inflation. Unlike currencies and debt instruments, gold does not depend on any issuer, which helps support its appeal when confidence in other assets weakens.
Central banks are among the largest holders of gold, and their buying has been a major source of support in recent years. Many authorities increase their gold reserves to diversify away from foreign exchange exposure and strengthen perceptions of financial stability. In 2022, central banks bought 1,136 tonnes of gold, valued at roughly $70 billion, the highest annual total on record. Demand has been particularly strong among emerging-market central banks, including those in China, India and Turkey.
Gold also tends to move inversely to the US dollar and Treasury yields. A weaker dollar generally makes gold more attractive to non-US buyers and can lift prices, while higher interest rates and stronger bond yields often weigh on the metal because it offers no income. Broader risk sentiment matters as well — when investors retreat from equities and other risk assets, demand for gold typically improves. Conversely, stronger stock markets and calmer financial conditions can reduce demand for the metal.
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