Gold Price in India | Gold Rate Today (18th September 2022)

Gold rates are reflective of market trends and interest rates. They do not include GST, TCS and other levies. For the latest and exact prices contact your local jeweller. Making charges may apply.

Know About Gold Price

24 Carat Gold

Gold is deemed to be in its purest form at 24 carats. Pure gold or 24 carat gold signifies 99.9 percent purity and it doesn’t contain any other metals. The 24 carat gold is used to make gold coins, bars, etc. Various other purities for gold also exist and are measured in relativity to 24 carats.

22 Carat Gold

The 22 carat purity gold is ideal for jewellery making. It is 22 parts gold and two parts silver, nickel or any other metal. The mixing of other metals makes gold more stiff and appropriate for jewellery. The 22 carat gold often reflects 91.67 of gold purity.

24 Carat and 22 Carat Gold: Know the difference

24 Carat Gold 22 Carat Gold
It is the purest form of gold and contains 99.5% of the precious yellow metal. It has 91.6% parts of pure gold. Rest of the parts are metals such as silver, copper, or some others.
It is quite soft, pliable, brittle, and bendable. It has a hard texture and thus cannot be easily moulded or bended.
It is mostly used in medical and electrical equipment including computers, phones, and more. It is relatively inexpensive due to lesser percentage of pure gold.
This is the most expensive form of gold. It is mostly used for making jewellery, bars, bullions, and coins.
It is bright yellow in colour. It is usually tainted due to the presence of other metals.

Gold Rate in Major Cities

Gold rates may vary from city to city based on various factors including demand, interests levied, octroi charges, state taxes, gold traders, bullion associations, transportation costs, making charges and other such.

Factors Affecting Gold Price in India

Gold is one of the most popular investment tools worldwide, especially in India. Like other financial assets, the price of gold also keeps fluctuating. While demand for gold is one of the key factors that determines its market price, a gamut of other factors have a role too. Find below some of the factors affecting daily gold rates.

1. Demand

Like any other commodity, demand and supply economics has a huge impact on gold prices. Increased demand with constrained or low supply usually results in a price hike. Similarly, an oversupply of gold with stagnant or weak demand can push the prices lower. In general, the demand for gold rises in India during the wedding and festive seasons.

2. Inflation

During inflation, the value of the currency goes down. In such a scenario, may prefer to hold onto money in the form of gold. This results in a spike in the prices of gold, which, in a way, acts as a hedging tool against inflationary conditions.

3. Interest rates

Gold and interest rates tend to have an inverse relationship. As the interest rates increase, people tend to sell off their gold to earn high interest. Similarly, when the interest rates decrease, people tend to buy more gold, thus increasing the demand.

4. Monsoon

A major part of gold demand in India comes from rural areas. This demand usually tends to escalate after a good monsoon, harvest, and resultant profits.

5. Government Reserves

Many governments have financial reserves that are composed primarily of gold, and India is no exception. However, if this reserve exceeds the gold sold by the government, the gold prices increase due to an insufficient supply. In India, this reserve is maintained by the Reserve Bank Of India.

6. Currency fluctuations

Gold trade in the international market transacts in US dollars. During import, when the US dollars are converted to Indian rupees, the gold price fluctuates. Usually, if the Indian rupee depreciates, gold import turns to be costlier.

7. Correlation with other assets

Gold has a low to negative correlation with all the major asset classes and thus, makes for a highly effective portfolio diversifier. As per the experts, gold protects one’s portfolio from volatility because the factors that affect the returns from most asset classes do not influence the price of gold much. Some even believe that as the shares of a company fall, an inverse correlation might develop between gold and equities.

8. Geopolitical factors

During geopolitical turmoils, such as a war, the demand for gold tends to go up as a safe haven for parking funds. Thus, while a geopolitical turmoil negatively impacts the prices of most asset classes, it has a positive impact on gold prices.

9. Octroi charges and Entry tax

Octroi charge and entry tax are local taxes levied by the tax authorities when goods enter their jurisdiction (state/city). Octroi is levied when the goods enter a city, whereas Entry tax is levied when the goods enter a state. Furthermore, if your gold is valued at more than Rs. 30 lakhs, a wealth tax is levied on it.

10. Making charges

Making charges are usually levied on gold jewellery and may differ from piece-to-piece, depending on the design, as well as from jeweller-to-jeweller.

Gold Buying Guide

Gold has been at the top of investor’s list for centuries now. One of the most popular forms of investments in India, it is considered as an important tool of financial security.

Besides the financial aspect, this yellow metal also holds religious and cultural significance in many a culture, factors which also add to its market value.

Although the modern markets are flooded with digital gold, the charm of physical gold stays intact.

However, investing in gold can be a tricky business and requires careful consideration of many factors. Here is an extensive buying guide that’ll help you with your next gold purchase.

Gold Purity

Purity of gold is one of the most important factors to be considered before gold shopping and is defined in terms of “Carats”, with 24K being the purest form. However, 24K gold is present in a malleable liquid form and needs to be mixed with other metals for sturdiness. For instance, 22k gold is a mix of 22 parts of gold, i.e. 91.6% and 2 parts of other metal alloys. The greater the level of purity, the more expensive gold is.

Gold Type

Physical gold can be bought in many forms- coins, bars, jewellery.

Gold Coins:

Some of the collectable gold coins have a higher market value than other forms of gold. However, authenticity needs to be checked carefully before this purchase.

Gold Bar:

Investment quality bullions or gold bars usually come with purity levels of 99.5%-99.99%. You can find this information stamped on the bar along with the weight and manufacturer’s name.

Gold Jewellery:

This is the most popular form and has a cultural significance too. However, the meltdown value is usually not as high as the original price.

Genuine Gold Certification

In India, the purity of gold is certified by the Bureau of Indian Standard via hallmarking, defined as putting up marks on precious metals. It is advised to always go for hallmarked gold, for an assurance of purity, as well as, legality.

Gold Cost per gram

The price of gold keeps fluctuating depending upon the current market situation. Make sure that you keep a regular check on the gold prices from credible websites.

Although it’s not possible to accurately predict a surge or downfall in the prices of gold, you can keep in touch with jewellers for estimation. Also, make sure to get the gold weighed separately if you are planning to get it studded with other precious stones, to ensure accuracy in prices.

Buy Back Terms

“Making charges” refer to the cost of producing and designing any piece of gold jewellery. It is added to the final cost of the jewellery, before levying the Goods and Services Tax (GST).

While some jewellers have a fixed making charge that usually fluctuates between 8-16%, others may charge it based on a certain percentage of the total jewellery weight. These charges vary depending upon the design and whether the piece is man-made or machine-made.

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