Gold Rate in India Today -

Today 22 Carat Gold Rate Per Gram in India (INR)

Gram 22 Carat Gold Today 22 Carat Gold Yesterday Daily Price Change
1 gram 4,833 4,814 19
8 gram 38,664 38,512 152
10 gram 48,330 48,140 190
100 gram 4,83,300 4,81,400 1900

Today 24 Carat Gold Rate Per Gram in India (INR)

Gram 24 Carat Gold Today 24 Carat Gold Yesterday Daily Price Change
1 gram 4,933 4,914 19
8 gram 39,464 39.312 152
10 gram 49,330 49,140 190
100 gram 4,93,300 4,91,400 1900

Gold Rate in India today depends on currency movement, US Federal interest Rate, duties/levies, local market conditions, global demand, inflation, government policies, and other factors. The highest and the lowest gold rate per 10 gram in India for 24 Karat is Rs. 50,684 and Rs. 49,640, respectively. The same for 22 Karat gold is Rs. 49,800 and Rs. 48,900, respectively. Gold as an asset helps to hedge inflation, works as a great investment tool, besides retaining its ornamental value in festivals and occasions. You can invest in physical and electronic forms of gold.

In this post we will discuss about Gold Rate in cities, Gold Rate for 24 Karat and 22 Karat, factors that impact Gold Rate in India, right time and ways to buy and sell gold, how price of yellow metal changes, taxes applicable, difference between 24 Karat and 22 Karat gold, how to check purity of gold, influence of inflation on price of precious metal, gold import and import duty rules, investment in gold and its different options, and frequently asked questions.

Factors That Determine Per Gram Gold Rate in India

Here are the factors affecting Gold Rate in India today:

  1. Domestic Currency: If rupee falls against USD (US Dollar), then the gold rate increases in India, and vice-versa, assuming that the price of yellow metal is steady in the international market. Other factors impacting Gold Rate in India today are levies and duties, subject to change from time to time.
  2. US Fed Interest Rate: Gold Rate today in India is dependent on movement in the US Federal Interest Rate. Both never go hand in hand. If the interest rate falls, the Gold Rate will increase and vice-versa. The US Fed Rate is important in determining rate of gold in India because investors move money from the precious metal to fixed interest yielding government bonds. Investors choose tools providing higher returns, and those that have minimum risk
  3. Global Demand: If demand is not strong, then the Gold Rate today per gram in India declines. When the demand is high for yellow metal, the gold cost will increase.
  4. International Factors: Some of the international factors that influence gold per gram rate in India are slowing global economic growth, changing policies, strength of dollar against other currencies, etc.
  5. Local Market Conditions: Jewellers apply making charges on gold jewellery. There could be other charges applicable, including that for service and packing. Thus, local costs too influence Gold Rate in India today.
  6. Government Policies: As gold is imported, there are several costs involved that may drain forex reserve. The government may initiate policies to discourage consumption of gold. This is especially true when gold rate rises, and forex reserves remain sufficient.

The Right Time to Purchase Gold

Depending on your need, you are eligible to purchase gold anytime in the country.

  • You can purchase gold in physical and electronic form. Physical gold is purchasable at jewellery shops and banks.
  • But, if you are looking to invest in gold, then you need to be careful. The returns from precious metal are not fixed or high yielding.
  • Thus, it is advisable to diversify your investment portfolio with other asset class such as real estate, equities, etc.
  • Along with gold investment, you can spread the risk in different asset class to maximize earnings in India.

Gold Buying Options in India

Some of the gold options to acquire include Sovereign Gold Bonds, Gold ETF (Exchange Traded Fund), and physical gold jewelleries/bars/coins.

  • Gold Bonds are exceptional choices because they come with higher interest Rate. It comes with 2.7% rate on the Sovereign Gold Bond.
  • So, the best substitute of physical gold purchase is gold ETF, especially those on the National Stock Exchange (NSE).
  • Gold mutual funds are also a credible option. These are open-ended funds where you can invest any amount at any time. As investing in gold mutual funds does require a Demat account, this alternative is easier than gold ETFs. You can also use Systematic Investment Plan (SIP) in this case.

Ways to Sell Gold in India

Some specialized companies can purchase gold But, to even sell gold, you need to produce your identity proof and PAN Card and other documents as requested.

  • The buyer may also ask for receipt of the jewellery.
  • To get the best return, or know the amount you can get from selling the asset, check for Gold Rate in India today and your city.
  • Companies that purchase gold have machines to check gold purity in Karats.
  • Make sure eligible systems are being used to check the gold weight and purity so that you do not get duped.
  • Ask for receipt from the purchaser for all the gold details.

How Gold Rates in India Change?

Gold Rate in India majorly depends on currency rate movements, local tariffs, and international Gold Rate. But it is the international prices of yellow metal that affects substantial change for gold Rate in India today. This is why the Gold Rate today may differ from that of yesterday. The price of the precious metal however does not change on Sundays, as no trading is done on this day.

  • Gold Rate tends to fall when inflation goes up. This is because the general expectation is that the interest Rate will rise with a rise in with inflation.
  • The movement of rupee against USD (US Dollar) also affects changes in prices of the precious metal. Another factor of influence is the movement in international prices.
  • Domestic factors such as policies, laws, political tensions, and other feasible/threatening conditions in the country also influence pricing of gold in India.

Taxes Applicable on Gold in India

You could be liable to pay capital gains tax if you buy or sell gold at a profit. Also, if the gold value is over Rs. 30 lakhs then you also have to bear wealth tax. Also, gold deposited under gold monetization schemes may attract income tax too if the acquiring source if not aforementioned to the income tax authorities.

Difference Between 22 Karats and 24 Karats Gold

Here are the distinguishing factors:

  • Karat is a unit to measure gold purity. A 24 Karat gold is the purest form of the yellow metal. It is considered as 99.9 percent pure.
  • A 22 Karat gold is 91.67 percent pure in 100 grams. On the other hand, an 18 Karat gold is 75 percent pure. A 22-Karat gold is also known as 916 gold.
  • The remaining percentage in the gold contains other metals. The colour of gold also tells its purity.
  • Mixing of other metals affect the gold colour. For instance, white gold has a whitish shade due to combination of nickel.
  • 24 Karats gold has a bright shine, while 22 Karats gold is bright, but a little less than the former, and henceforth.

How to Check Gold Purity?

There are several ways to check purity of yellow metal in India:

  • Magnetic Method and Acid Test: The magnetic method is the most common one, while the acid test (nitric acid) is redundant. It is easier to carry a magnet to understand if gold is mixed with other metals. The magnet will spot mixture if any with the gold.
  • Scratching Test: Here the gold is scratched against a ceramic plate. If the scratch leaves gold colour, then it means the gold is real. If the scratch colour is grey or black, then it means the metal is not gold.
  • Skin Test: Also, pure gold does not discolour when you rub it against your skin. You may have found jewellers using the skin test to check if the metal discolours. This is a way to authenticate if the content is fake or of gold before further tests to establish purity.

Inflation and Gold Rate in India

Inflation has a great impact on gold rate in India. The interest rate on gold goes up when the inflation rises. As the interest Rate goes up, the price of yellow metal tends to fall. Investors and people then sell more of gold and purchase securities and yields of greater returns. You must keep a check with your local jeweller and financial expert before investing in gold of large quantity. Investors must therefore reserve a natural hedge for decline in Gold Rate. In the international market, the interest rate of gold in the US influences the Gold Rate in India. When the US interest Rate goes higher, the price of yellow metal in India too increases.

  • The Gold rate falls when inflation rises in the US. This is because the US Federal Reserve usually spikes the interest rate then.
  • Thus, selling of gold as an activity too increases as people then rush to sell gold and invest in instruments carrying a higher rate of interest.
  • For instance, people may sell gold and invest in Sovereign Bonds in the US as these are secure, offer a regular interest, and good for the long term.
  • Thus, it is the global inflation and not the domestic inflation in India that impacts the Gold Rate. As interest rate is the determinant factor in gold cost, the yellow metal price too then depends on the global inflation, especially that of the US.

Gold Imports in India

The country imports a majority of its gold for all requirements. This is because India does not mine gold. In the past, places such as Kolar in Karnataka used to mine the metal. But the same is closed. The country uses imported Gold Rate to arrive at Gold Rate in India for different Karats. The importers of gold in India are public and private sector banks as well as several reputed private companies. Some of the major importers of the yellow metal in country are:

  • Minerals and Metal Trading Corporation of India
  • SBI or State Bank of India
  • Union Bank of India
  • Bank of Baroda
  • Punjab National Bank
  • Bank of India
  • YES Bank

The above-mentioned are just a few to mention importers. When gold is imported, there cost adds up with VAT (Value Added Tax), import duties, and others. The government alters import duty depending on the domestic need to curb the imports. The current Gold Rate in India is also affected by the import duty. The import duty on gold is currently fixed at 10%. The importers sell the metal to wholesalers and then to retailers, and henceforth.

Gold Import Duty Rules

If you live outside India, and want to carry your gold in the country, then there are a few import norms to follow:

  • Male passengers can carry gold worth Rs. 50,000 in India. On the other hand, female passengers can carry gold worth Rs. 1 lakh in the country. Child passengers can carry this precious metal as well, and it comes with an import allowance too.
  • The import duty on gold or the price of carrying gold to India is set by the Indian government. You may submit the gold purchase receipt from abroad, but the Gold Rate in India remains unaffected by it. You can bring only up to 1 kg of gold in India.
  • The government discourages gold imports in India because the gold is paid in dollar terms. So, for the country, it causes a drain on the forex reserves. Thus, the government has put up measures such as Sovereign Gold Scheme to reduce consumption of gold in physical form.

Investment in Gold Schemes by Jewellers

Jewellers in India are known to launch their own gold investment schemes. They offer several systematic investments plans. These plans can help you accumulate gold for events or marriage.

  • In the past, jewellers used to have schemes where you would have to pay ten instalments and they would pay one after which you could purchase the jewellery.
  • But times have changed, and interest rates have fallen, making the jewellers update the schemes. However, SIPs by jewellers for gold are excellent ways to accumulate gold for occasions.
  • Some jewellers have investments schemes with benefits such as no making charges or discounted charges for gold purchase, and likewise.

Quantitative Easing (QE) and Gold Rate in India Today

QE impacts the Gold Rate in India. Now what Quantitative Easing is, we will explain with an example. For instance, you have excess funds, so you may wish to make a purchase. Going by the QE logic, excess funds from citizens naturally adds money supply to economy to boost consumption. Additional money to citizens come in any forms, especially when Central Banks in the globe purchase securities. This adds money supply in system, and somehow people with investment mindset, may invest the funds in gold. Thus, the price of gold in India too may push up. An increase in QE will also increase Gold Rate in India today.

  • US has already completed the Quantitative Easing phase. A bit easing of QE is also seen in Europe and Japan and the central bank of other countries.
  • Gold demand and investment is heavy in US. Thus, QE here is happening at basic level. Gold Rate in trade may fall if the global economy encounters liquidity issues.
  • Withdrawal of QE can cause decline in yellow metal’s price and impact gold rate in India.

What is a Sovereign Gold Bond Scheme?

Buying Sovereign Gold Bond is better than investing in physical gold. This is because the former does away with risk to fraud, theft, etc. You can purchase the gold bonds from eligible banks in India. The bond offers an 2.75% interest rate. Also, you can redeem these at a price set by the Reserve Bank of India that changes periodically. The Sovereign Gold Bonds are also available at post offices and Stock Holding Corporation.

  • Though the interest earned is taxable, you get better capital appreciation through regular interest earned as well.
  • These bonds are listed on the NSE, and rated as per gram of gold.
  • However, a con of gold bond is that it is not that liquid. Thus, you may not be able to sell the same in a large quantity.
  • Like ETF, you can track Gold Rate in India, so you know how much return you will receive in real time.

Should You Invest in Gold ETFs?

If you want to keep your gold safely, then you can hire a bank locker in India. But bank lockers come with a fee. But, if you wish to gain returns from idle lying gold, then you can buy electronic forms of gold. In other words, you can buy bulk gold in ETF form. Here, there is no worry of theft or security of gold, as against that in bank lockers. You can also easily track the daily price for ETF gold form. Gold ETF is more liquid than gold in physical form. It also gives higher returns on the metal and more security to the asset. Also, there is no problem of storage.

Frequently Asked Questions About Gold Rate in India Today

Here are FAQs on Gold Rate today in India:

Here are things to keep in mind when purchasing gold:

  • Do’s: Check for the purity of gold when buying jewellery. Look for BIS hallmark, as this will tell you the proportion of gold content. Also, check for the net weight of gold in jewelleries that contains studded precious stones or other metals.
  • Don’ts: Avoid selling your jewellery to other jewellers from whom you had not purchased the items. This is because, the new jeweller may not provide you the accurate resale value.

Here is what distinguishes a Karat from Carat:

  • Karat: This is a unit that judges purity or finesse of gold. A 24 Karat (Kt) gold means that the gold is 99.99% pure. The purity decreases when gold, a soft alloy, is mixed with other metal, usually copper. It is then that thepurity is denoted as parts of gold out of the 24. For instance, a 22 Kt gold is mixed with copper. It means that there are 2 parts of copper and 22 parts of gold.
  • Carat: Ct or Carat is a unit of measure (weight) for precious gems such as pearls and diamonds. 0.2 grams or 200 milligrams make a metric Ct. Remember that Carat does not denote size but weight of the gem.

You can purchase gold in form of coins and bars (bullion) from any selected bank or jewellery outlet (offline and online). To purchase 24 Karat gold bars, you can get 5 grams to 100 grams denomination items. These carry a purity certificate. Gold coins are easily accepted for gold loan at banks and NBFCs as against gold bars.

  • Gold Coins: You can purchase in denomination of 2 grams to 50 grams of 24 Karat. These available at banks or jewellery shops (offline or online).
  • Contracts: Future contracts and spot contracts provide a delayed access to the bullion. These are available at NCEDX, MCX, RSBL, and Bullion India. The future contracts offer protection against market risks but are delayed in deliveries. The spot contracts are delivered on an immediate basis, but come with market risks.

As per the Bureau of Indian Standards (BIS), the jewellery that contains the BIS logo means that the same is tested in an authorized laboratory. The BIS is an accrediting agency that certifies quality of gold. You can also know the gold quality by checking for its purity as per the hallmark.

Hallmark is a sign that denotes the gold finesse and guarantees for the metal’s purity. The mark also says that the gold meets international standards. The BIS issues hallmark sign for gold jewellery, and the seal includes:

  • BIS logo
  • Assaying centres logo
  • Retailers logo
  • Purity in Karat

There is no difference in pricing of non-hallmarked and hallmarked gold in India. The Gold Rate depends on purity and weight of gold. However, hallmarked jewellery ensures purity of the asset. Hallmarked gold items reduce the role of essaying centres that determine purity of gold. This is why, hallmarked jewellery is preferable for buyers.

Pricing of gold differs across cities in the country because of:

  • Gold Associations: These associations may fix Gold Rate as per the market conditions.
  • Cost of Transport: Import of gold is by sea in the country. The cost of transportation, security arrangement, and other logistics may add up on local pricing of gold.
  • Local Taxes: The tax varies from a state to another. Some states may levy a lower or higher tax on gold.
  • Quantity You Buy: If you buy gold in larger quantity, then the overall discount on the asset may increase.

Here is a gold weight conversion table. It will help convert Gold Rate in different units of mass and weight. You can know the estimated amount for gold by the Rate in different weights.

Unit to Convert From< To Unit And Multiply by
Tonnes Troy ounces 32150.7
Troy ounces Grains 480
Kilograms Tolas 85.755
Kilograms Bahts 68.41
Kilograms Troy ounces 32.1507
Troy ounces Grams 31.1035
Million ounces Tonnes 31.1035
Kilograms Taels 26.7172
Troy ounces Penny weights 20
Troy ounces Avoirdupois ounces 1.09714
Avoirdupois ounces Troy ounces 0.911458
Short tonne Metric tonne 0.9072
Grams Troy ounces 0.0321507

The Goods and Services Tax (GST) on gold jewellery is 3%. In the past, gold jewellers had to pay 1.2% VAT, 1.5% excise duty, and 10% customs duty on gold purchase. The total came up to 12.43% tax before GST. But after GST, the jewellers have to pay 10% import duty. They also have to pay 18% tax on making charges, which was none before GST. Thus, the total tax now payable post GST is 15.67%. But after protests from Indian Jewellery Council, the rate was fixed to 5% on making charges. As a customer, you have to pay 3.24% tax extra as per the Goods and Service Tax when purchasing gold jewellery.

Gold is a precious metal that works as an asset and investment tool. It helps mitigate risk and diversify investment portfolio. The yellow metal is not only of an ornamental value during celebrations and festivals, but also a negator for investors when stock market is volatile. The previous metal is suitable for long term returns, and a hedge against currency debasement as well as inflation. It also is an alternative when debt and equities take a downturn in stock markets.

Gold is one of the key commodities traded in commodity exchanges of India. You can choose from 3 commodity exchanges. These are governed by the Forward Markets Commission. The 3 exchanges given below provide settlement systems or electronic trading:

  • National Commodity and Derivative Exchange
  • Multi Commodity Exchange of India Ltd.
  • National Multi Commodity Exchange of India Ltd.