At the beginning of the new fiscal year (AF) 2025-2026 in India, the price of gold remains firm on Tuesday after winning 32% in AF 2024-2025.
The purchase interest around the price of gold in India remains unchanged in the midst of speculation about its potential to reach 1 Lakh of Indian rupees (INR) for 10 grams in AF26.
The increase in purchases by the central banks and the growing tensions of the commercial war, triggered by the aggressive tariff policies of US President Donald Trump, continue to boost the traditional asset of safe refuge.
At the time of writing, the price of gold is quoted at 8,647.24 INR per gram, after Monday’s closure of 8,586.34 INR, according to data collected by FXSTERET.
Meanwhile, the price of gold increased to 100,859.70 INR per tola from 100,149.40 INR per tola a day before.
| Unit of measure | Gold Price in INR |
|---|---|
| 1 gram | 8,647.24 |
| 10 grams | 86,472.42 |
| Tola | 100,859.70 |
| Troy ounce | 268,959.50 |
Movements in global markets: the purchase of gold remains unchanged
- The US president faded the hopes that tariffs were limited to a smaller group in countries with the greatest commercial imbalances and said Sunday that reciprocal tariffs would essentially include all nations. This adds to Trump’s 25% tariff about steel and aluminum, and car imports, fueling concerns about an expanding global commercial war.
- In addition, investors now seem convinced that a slowdown driven by tariffs in the economic activity of the US would force the Federal Reserve (Fed) to resume their cycle of feat cuts soon, despite persistent inflation. This, in turn, helps the price of safe refuge gold to register its strongest quarter since 1986 and reach a new historical maximum on Tuesday.
- Markets currently value the possibility that the US Central Bank reduces indebtedness costs at 80 basic points by the end of this year. This keeps depressed the yields of the US Treasury bonds, which, in turn, does not help the dollar attract significant buyers and further reinforce yellow metal without yield.
- In the geopolitical front, Ukrainian officials said early Monday that Russia bombed the city of Járkov in the northeast of Ukraine for the second consecutive night. In addition, the president of Ukraine, Volodymyr Zelenskyy, said that Russia had fired more than 1,000 drones in the last week and asked for a US response and other allies.
- Israel, earlier this month, ended its fire with the militant group Hamas and renewed its air and land attacks. To this is added that the Israeli army has issued mass evacuation orders for Rafah, pointing out a possible new terrestrial operation in the city, increasing the risk of a greater climb of tensions in the region.
- The operators are now pending the key macroeconomic publications of the US this week, scheduled for the start of a new month, starting with Jolts employment offers and the ISM manufacturing PMI on Tuesday. This will be followed by the ADP report on Wednesday, the US ISM services PMI on Thursday and the expected Non -Agricultural Payroll (NFP) of the USA on Friday.
- However, the attention will remain focused on the imminent announcement of Trump’s reciprocal tariffs later today, at 7:00 p.m. GMT. This will play a key role in influencing the feeling of broader risk and the dynamics of the USD price, which, in turn, should provide a significant impulse to the Xau/USD torque.
FXSTERET calculates gold prices in India adapting international prices (USD/INR) to the local currency and units of measure. Prices are updated daily according to market rates taken at the time of publication. Prices are only reference and local rates could diverge slightly.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
(An automation tool was used to create this publication.)
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
