Gold prices in India remained relatively stable on May 13, 2025, with only slight changes from the previous day. According to compiled data, the price of gold was INR 8,839.07 per gram, a small increase from INR 8,830.46 on Monday. The price per tola of gold was INR 103,099.20, compared to INR 102,996.80 the day before.
Several global economic factors influence gold prices. The US 10-year Treasury note yield rose by seven basis points to 4.453%, while the real yield, shown by the US 10-year Treasury Inflation-Protected Securities, stayed at 2.163%. Central banks worldwide continue to increase their gold reserves.
The World Gold Council says the People’s Bank of China added 2 tonnes to its gold reserves in April, marking six months of steady accumulation. The National Bank of Poland increased its reserves by 12 tonnes to a total of 509 tonnes, and the Czech National Bank added 2.5 tonnes. Market projections suggest the Federal Reserve may cut interest rates, with a 25 basis point reduction expected for the July meeting and another cut toward the end of the year.
Gold price trends influence markets
Gold is still seen as a strong investment and a safe-haven asset during economic uncertainty. It is considered a hedge against inflation and currency depreciation because its value does not depend on any specific issuer or government.
Central banks, especially from emerging economies like China, India, and Turkey, continue to increase their gold reserves to support their currencies and show economic strength. The value of gold has an inverse relationship with the US Dollar and US Treasuries. When the Dollar loses value or there is trouble in the stock markets, gold prices usually rise as investors look for safer assets.
Geopolitical instability or fears of a recession can also cause gold prices to go up because of its appeal as a safe haven. In India, gold prices are calculated by adjusting international prices (USD/INR) to the local currency and are updated daily based on market rates. As a result, local rates may differ slightly.
It is important to note that investing in financial markets involves significant risks, including the possible loss of principal. It is essential to do thorough research and get advice from financial advisors before making investment decisions.