India, Sept. 15 -- Gold and the US dollar might seem like two different investment avenues, but they have strong links. International gold is valued in US dollars, and Indian investors buy gold in rupees. This shows that fluctuations in the value of the dollar-rupee pair will affect the price of gold in the local market.

The link has especially become significant in 2026 since gold prices have been at all-time highs owing to geopolitical risks, US monetary policy changes, and continued demand by central banks. According to the World Gold Council, geopolitics, dollar movements, interest rates, and investment demand have been the major factors influencing the performance of gold.

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