What affects the gold rate in India?

The global price comes first

Gold is traded around the world and priced in US dollars per ounce. The price in India begins with that global price and then changes for local reasons.

The main factors

• The rupee against the dollar. When the rupee weakens, gold costs more in rupees even if the global price is unchanged.
• Import duty and taxes. India imports most of its gold, so changes in duty and tax feed into the local rate.
• Demand. Weddings and festivals raise demand in India, which can lift prices.
• Interest rates and inflation. Gold pays no interest, so it tends to look more attractive when interest rates fall or inflation worries rise.
• Central banks. Large purchases by central banks can support prices.
• Uncertainty. Investors often move into gold during economic or geopolitical stress.

Why rates differ between cities and websites

Published city rates are usually close but not identical. Different sources update at different times and use different methods, and the price a jeweller or buyer actually uses may differ from a website. Ask what rate your buyer is using and when it was fixed.

Why 22K and 24K rates differ

The 22K rate is lower because 22K contains less gold. It is roughly 22/24 of the 24K rate before any making charges. Our calculator applies this for you.

What this means for you

Rates move through the day and cannot be predicted reliably. If you are deciding whether to sell, base it on your need and your numbers. Read selling gold or keeping the gold loan, and how old gold is valued.