Gold prices were broadly unchanged in India on Friday, based on FXStreet data. Gold was priced at INR 14,120.49 per gram, the same as Thursday.
Gold was also steady at INR 164,698.70 per tola, unchanged from a day earlier. Other listed prices were INR 141,204.90 for 10 grams and INR 439,196.70 per troy ounce.
How Prices Are Estimated
FXStreet estimates Indian gold prices by converting international prices using the USD/INR exchange rate and local units. Prices are updated daily using market rates at the time of publication, and local prices may differ slightly.
Central banks are the largest holders of gold. They added 1,136 tonnes worth around $70 billion to reserves in 2022, the highest annual purchase since records began.
Gold is typically inversely correlated with the US Dollar and US Treasuries. It can also move opposite to risk assets, and is influenced by factors such as geopolitical events, recession fears, and interest rates.
Gold prices often respond to moves in the US Dollar because gold is priced in dollars (XAU/USD). The post states an automation tool was used to create the content.
Key Drivers To Watch
Given the current stability in gold prices, we see this as a potential calm before a significant move in the coming weeks. The primary drivers for gold, like US interest rate policy and geopolitical tensions, remain critical factors to watch. These elements suggest that the current price level might be a base for future volatility.
We should pay close attention to the US Federal Reserve’s actions, as lower interest rates typically boost gold’s appeal. Looking back, inflation cooled significantly throughout 2025, with the annual CPI rate falling to 2.3% by year-end, which has fueled market expectations for rate cuts this quarter. Derivative traders should note that the CME FedWatch Tool now indicates a greater than 70% probability of a rate cut by the mid-year meeting.
This expectation of monetary easing is putting downward pressure on the US Dollar, a key catalyst for gold. A weaker dollar makes gold cheaper for holders of other currencies, which can increase demand. The Dollar Index (DXY) has been trading below the 101 mark for several weeks, a notable shift from the highs we observed back in 2024.
Furthermore, we cannot ignore the persistent demand from central banks, which provides a strong floor for the price. Following the record-breaking purchases of the last few years, central banks, particularly in emerging markets, added another 850 tonnes to their reserves in 2025. This trend shows a continued effort to diversify away from the US Dollar.
Considering these factors, derivative traders might view the current stability as an opportunity to position for a potential upward price movement. Strategies like buying call options or establishing bull call spreads could be effective ways to capitalize on a rise in both price and implied volatility. This allows for defined risk while capturing potential upside from the supportive macroeconomic backdrop.
