Gold prices rose in India on Monday, March 3, 2025. The price for gold stood at 8,045.15 Indian Rupees (INR) per gram, up from INR 8,014.58 on Friday. The price per tola also increased to INR 93,838.03 from INR 93,480.45 on Friday.
Gold prices in India are determined by adapting international prices (USD/INR) to the local currency and measurement units. These prices are updated daily based on market rates and can serve as a reference, though local rates may slightly diverge. Gold has historically attracted investors as a store of value and medium of exchange.
It is also widely regarded as a safe-haven asset, providing financial security during turbulent times. Gold is viewed as a hedge against inflation and depreciating currencies. Central banks are among the largest holders of gold, as they diversify their reserves to support their economies and currencies.
March 3 gold price update
In 2022, central banks added 1,136 tonnes of gold, worth approximately $70 billion, to their reserves – the highest yearly purchase since records began. Gold often shows an inverse correlation with the US Dollar and US Treasuries.
When the Dollar depreciates, gold prices tend to rise, making it a preferred asset for diversification during market instability. Conversely, strong US Dollar performance typically keeps gold prices in check. Various factors affect gold prices, including geopolitical instability and economic downturns.
The metal’s price can spike during such times due to its safe-haven status. Lower interest rates generally drive gold prices up, while higher rates weigh them down. However, the most influential factor is usually the behavior of the US Dollar, as gold is priced in dollars (XAU/USD).
The recent rise in gold prices in India highlights its continued significance as a dependable asset, especially during periods of economic uncertainty.