Why Gold Prices Fell in India Despite Global Surge: WGC Report Reveals Key Factors

• Global gold prices rose 5% to $2,222 per ounce in February, but Indian prices fell 3.5%.
• The decline in India was due to a strengthening Indian Rupee, bolstered by a major trade deal and tariff relief from the United States.
• India and China were the only regions with negative gold returns in February; India saw a -3.5% return.
• Global gold prices are rising due to heavy central bank buying, a trend strengthening since 2022, using gold as a reserve against declining US dollar dominance and geopolitical instability.
• Future Indian gold prices will depend on the Rupee's strength against a potentially weakening US dollar, which could support global gold.