Gold Rate Today

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Know about Gold Rate in India

India is the largest consumer of gold in the world, accounting for almost a quarter of the world’s total consumption. It has, since long, maintained this position and, unlike countries like China, India uses gold primarily in the form of jewelry and investments. It is viewed as a solid instrument for investments and even traders who are into commodities trading, invest in gold bullion. These investments are usually dictated by the gold rates prevailing in the economy at that time.

Even the global view of gold is that of a safe haven where you can invest even when investments in the economy of a country are not a good idea.

Gold rate in India change on a daily basis, with a number of factors impacting their price in a particular place on a given day. Demand and supply, global market conditions and currency fluctuations are some of the most critical factors which go into determining the rate of gold in a country, with prices changing every day.

Gold Rate in India for Last 5 Days (1gm)

Historical Gold Price in India

Also check : Silver Rate in India

Trend of Gold Rate in India for September 2021 (rates per gram of 24 karat gold)

September 2021 - Week 1 (1 - 5):

• Gold price opened in India at the rate of Rs.4,818 per gram in the month of September. There was no change in the price of the precious metal when compared to the closing price of the previous month.
• During the month, gold recorded the highest rate on the 4th and 5th September wherein a gram of 24 karat gold was being sold for Rs.4,839 per gram. The lowest price of the precious yellow metal was recorded on the 2nd and 3rd of September when the price stood at Rs.4,808 per gram.
• The precious metal closed the first week of September being traded at the rate of Rs.4,839 per gram.

September 2021 - Week 2 (6 - 12):

• Gold price opened in India at the rate of Rs.4,818 per gram in the month of September. There was no change in the price of the precious metal when compared to the closing price of the previous month.
• During the month, gold recorded the highest rate on the 4th and 5th September wherein a gram of 24 karat gold was being sold for Rs.4,839 per gram. The lowest price of the precious yellow metal was recorded on the 2nd and 3rd of September when the price stood at Rs.4,808 per gram.
• The precious metal closed the first week of September being traded at the rate of Rs.4,839 per gram.

Trend of Gold Rate in India for August 2021 (rates per gram of 24 karat gold)

August 2021 - Week 1 (1 - 8):

• In India, gold opened the fourth week of August at Rs.4,892 per gram. When compared to the closing price of the previous week, the rate was down by Rs.278 for every gram.
• The rate of the yellow metal witnessed slight fluctuations until 23rd August. While gold rate shot up on 20th August, it declined on 21st and 22rd August. A gram of 24-karat gold was priced Rs.4,860 per gram on 23rd August.
• Gold price in India closed the penultimate week of the month at Rs.4,860 per gram as the rate didn’t see any change on the final two days of the week. The overall performance of the yellow metal was one of incline.

August 2021 - Week 2 (9 - 15):

• Gold price in India at the start of the second week of August was Rs.4,719 per gram. When compared to the closing price of the previous week, the rate was down by Rs.298 for every gram.
• Having opened the week at the lowest recorded price for the month till date, the price of the yellow metal remained unchanged on 10th and 11th August before increasing gradually.
• The price of the yellow metal closed the week at Rs.4,787 per gram. Gold's overall performance in the national capital witnessed a declining trend.

August 2021 - Week 3 (16 - 22):

• Gold price opened in India at the rate of Rs.4,892 per gram in the month of August. The overall performance of the precious metal witnessed a decline.
• During the month, it recorded the highest rate on 2nd August wherein a gram of 24 karat gold was being sold for Rs.5,143 per gram. The lowest price of the precious yellow metal was recorded from 9th to 11th of August when the price stood at Rs.4,719 per gram.
• The precious metal closed the third week of August being traded at the rate of Rs.4,803 per gram.

August 2021 - Week 4 (23 - 31):

• In India, gold opened the final week of August at Rs.4,813 per gram. There was an incline of Rs.10 in the price of the yellow metal when the rate was compared to the closing price of the previous week.
• While the price of the precious metal increased the following day as well, it slipped on 25th and 26th August. The rate of gold shot up again on 27th and 28th August before declining gradually.
• Gold price in India closed the week at Rs.4,834 per gram. The overall performance of the yellow metal in the country witnessed a declining trend.

Trend of Gold Rate in India for July 2021 (rates per gram of 24 karat gold)

July 2021 - Week 1 (1 - 4):

• Gold price in India opened the first week of July at Rs.4,792 per gram. When compared to the previous week’s closing price, the price was up by Rs.21 per gram in the country.
• Over the week, the price of the precious metal increased gradually in the country. The lowest and highest price of the yellow metal for the month was recorded on 1st and 4th July. On the mentioned dates, a gram of 24-karat gold cost Rs.4,792 and Rs.5,046 respectively.
• The overall performance of gold in the country witnessed an inclining trend over the opening week of the month.

July 2021 - Week 2 (5 - 11):

• Gold price in India opened the second week of July at Rs.5,048 per gram. The price of the yellow metal was down by Rs.41 per gram in the country when the rate was compared to previous week’s closing price.
• The price of the precious metal dropped in the country over the next two days. The decline in the price saw gold record its lowest price for the month till date on 11th July with a gram costing Rs.4,782.
• Gold rate continued to see slight fluctuations over the remainder of the week and closed at Rs.4,792 per gram. The overall performance of the yellow metal in India witnessed a declining trend.

July 2021 - Week 3 (12 - 18):

• Gold price in India opened at the rate of Rs.4,792 per gram in the month of July. The overall performance of the precious metal witnessed an incline.
• Till the end of the third week of the month, it recorded the highest rate on 17th July wherein a gram of 24 karat gold was being sold for Rs.5,171 per gram.
• The lowest price of the precious yellow metal was recorded on the 1st of July when the price stood at Rs.4,792 per gram.

July 2021 - Week 4 (19 - 25):

• In India, gold opened the fourth week of July at Rs.4,892 per gram. When compared to the closing price of the previous week, the rate was down by Rs.278 for every gram.
• The rate of the yellow metal witnessed slight fluctuations until 23rd July. While gold rate shot up on 20th July, it declined on 21st and 22rd July. A gram of 24-karat gold was priced Rs.4,860 per gram on 23rd July.
• Gold price in India closed the penultimate week of the month at Rs.4,860 per gram as the rate didn’t see any change on the final two days of the week. The overall performance of the yellow metal was one of incline.

July 2021 - Week 5 (26 - 31):

• Gold price opened in India at the rate of Rs.4,792 per gram in the month of July. The overall performance of the precious metal witnessed an incline.
• During the month, it recorded the highest rate on 17th and 18th July wherein a gram of 24 karat gold was being sold for Rs.5,171 per gram. The lowest price of the precious yellow metal was recorded on the 1st of July when the price stood at Rs.4,792 per gram.
• The precious metal closed the month of July being traded at the rate of Rs.4,892 per gram.

Trend of Gold Rate in India for June 2021 (rates per gram of 24 karat gold)

June 2021 - Week 1 (1 - 4):

• In India, gold rate opened the month of June at Rs.5,098 per gram and was steady at the same rate on 2 June due to a mute international trend.
• The price of the metal increased on 3 June due to a fall in the dollar value in the market and was at Rs.5,126 per gram.
• On the last day of the week, gold prices increased further by Rs.10 and closed the week at Rs.5,136 per gram on 4 June.

June 2021 - Week 2 (5 - 11):

• Gold price in India at the start of the second week of June was Rs.5,089 per gram. Compared to the price charged on the final day of the previous week, there was a decline of Rs.47 for every gram.
• While the price of the yellow metal shot up over the next two days recorded a slight decline on 8th June before increasing again. Gold recorded its highest price for the month till date on 9th June when a gram of 24-karat cost Rs.5,243.
• Gold closed the week at Rs.5,231 per gram after the price of the precious metal slipped towards the end of the week. The overall performance of gold was one of incline.

June 2021 - Week 3 (12 - 18):

• Gold price in India opened the third week of June at Rs.5,265 per gram. There was a hike of Rs.34 per gram when compared to the closing price of the previous week.
• The highest rate for the month was recorded on 12 June wherein it stood at the rate of Rs.5,265 per gram. The lowest rate was recorded on the 5th and 18th wherein a gram of gold was being traded at Rs.5,089.
• The overall performance of the yellow metal witnessed a decline in the third week of June.

June 2021 - Week 4 (19 - 25):

• Gold price in India opened the fourth week of June at Rs.5,048 per gram. The price of the yellow metal was down by Rs.41 per gram in the country when the rate was compared to previous week’s closing price.
• The price of the precious metal dropped in the country over the next two days. The decline in the price saw gold record its lowest price for the month till date on 21st June with a gram costing Rs.4,782.
• Gold rate continued to see slight fluctuations over the remainder of the week and closed at Rs.4,792 per gram. The overall performance of the yellow metal in India witnessed a declining trend.

June 2021 - Week 5 (26 - 30):

• In India, gold opened the fifth week of June at Rs.4,083 per gram. When compared to previous week’s closing price, the price of the yellow metal was up by Rs.11 for every gram.
• While the price of the precious metal remained unchanged the next day, it shot up to Rs.5,032 per gram on 28th June before slipping in the country.
• Gold price in India closed the week at Rs.4,771 per gram. This was the lowest recorded price of the yellow metal for the month. Gold’s overall performance was one of decline in the country.

Trend of Gold Rate in India for May 2021 (rates per gram of 24 karat gold)

May 2021 - Week 1 (1 - 7):

• Gold price in India opened the month at Rs.4,956 per gram on 1 May and increased throughout the week. The price of the yellow metal increased marginally to Rs.4,957 per gram on 2 May and further to Rs.4,977 per gram on 3 May.
• In the country, the price of the metal increased to close the Rs.5,000 per-gram mark at Rs.4,998 per gram on 4 May and increased by Re.1 to hit its weekly high at Rs.4,999 per gram due to a weak dollar.
• At the end of the week, gold prices retreated to Rs.4,974 per gram on 6 May and increased marginally, closing the week at Rs.4,975 per gram on 7 May.

May 2021 - Week 2 (8 - 14):

• In India, the price of gold at the start of the second week of May was Rs.4,999 per gram. There was an increase of Rs.24 for every gram when the rate was compared to the closing price of the previous week.
• Gold price in India slipped the following day and recorded its lowest price for the month till date. A gram of 24-karat gold was retailed for Rs.4,700 on 9th May. The rate of the yellow metal recovered quickly and recorded its highest price for May on 11th May when a gram was retailed for Rs.5,010
• The yellow metal closed the week at Rs.5,000 per gram. The overall performance of gold in the country was one of incline.

May 2021 - Week 3 (15 - 21):

• Gold price in India at the start of the third week of May was Rs.5,020 per gram. When compared to the closing price of the previous week, the price was up by Rs.20 for every gram.
• The price of gold increased gradually in the country over the week and recorded its highest price for the month till date on 20th May. A gram of 24-karat gold was retailed for Rs.5,083 on the mentioned date.
• Gold closed at the same price as the rate didn’t see any change on the final day of the week. The overall performance of gold in the country was one of incline.

May 2021 - Week 4 (22 - 28):

• In India, the price of the metal opened the 4th week of the month at Rs.5,083 per gram on 22 May and held steady until 25 May.
• The price of the metal increased to Rs.5,100 per gram on 26 May which was the highest of the month.
• Gold rate in India stayed the same at Rs.5,100 per gram on 27 May with a steady trend seen in the international market. At the end of the week, gold prices declined marginally and closed the week at Rs.5,089 per gram on 28 May.

May 2021 - Week 5 (29 - 31):

• Gold prices in India opened the last week of the month at Rs.5,069 per gram on 29 May and increased to Rs.5,076 per gram on 30 May.
• The price of the metal increased further on the last day of the month due to a fall in the dollar value and closed at Rs.5,087 per gram.

Trend of Gold Rate in India for April 2021 (rates per gram of 24 karat gold)

April 2021 - Week 1 (1 - 4):

• The price of gold in India at the start of the week was Rs.4,717 per gram. When compared to the closing price of the previous month, the price for every gram slipped by Rs.28.
• Over the week, gold prices in India climbed and recorded its highest price for the month till date on 4th April. A gram of the precious metal cost Rs.4,846 on the mentioned date.
• Gold price in India witnessed an inclining trend over the week.

April 2021 - Week 2 (5 - 11):

• Gold price in India opened the second week of the month at Rs.4,846 per gram on 5 April and was steady on the following day due to mute trends seen in the international market.
• On 7 April, the price of the yellow metal increased to Rs.4,860 per gram and further to Rs.4,888 per gram on 8 April as the value of the U.S. Dollar fell in the market prompting investors to shift to the bullion market.
• The price of gold on 9 April was Rs.4,926 per gram and inclined further to hit its highest in the week and the month at Rs.4,980 per gram on 11 April.

April 2021 - Week 3 (12 - 18):

• Gold price in India opened the third week of April at Rs.4,982 per gram. There was an increase of Rs.2 in the rate when compared to the closing price of the previous week.
• The price of gold recorded its highest for the month till date on 17th April when a gram cost Rs.5,031.
• Gold rate slipped on the final day of the week and closed at Rs.4,042 per gram. This was the lowest recorded price of the yellow metal for the month. The overall performance witnessed a declining trend in the rates.

April 2021 - Week 4 (19 - 25):

• Gold in India opened the fourth week of April at Rs.5,042 per gram on 19 April and increased to Rs.5,063 per gram on 20 April due to international trends. However, the precious metal declined marginally to Rs.5,051 per gram on 21 April.
• With lower U.S. Treasury bond yields and a weaker dollar value, gold prices increased to Rs.5,082 per gram on 22 April and further increased to hit its highest of the month at Rs.5,086 per gram.
• However, with the dollar value recovering in the market, gold prices declined to below the Rs.5,000 per-gram level on 24 April at Rs.4,845 per gram and closed the week at the same rate.

April 2021 - Week 5 (26 - 30):

• In India, gold opened the fifth week of April at Rs.4,845 per gram. When compared to the closing price of the previous week, the price of the yellow metal didn’t see any change.
• While the price of the yellow metal slipped on 27th and 28th April, it increased on 29th April. A gram of 24-karat gold cost Rs.4,813 on the mentioned date.
• Gold price in India slipped again on the final day of the month and closed at Rs.4,761 per gram. The overall performance of gold in the country witnessed an inclining trend.

Trend of Gold Rate in India for March 2021 (rates per gram of 24 karat gold)

March 2021 - Week 1 (1 - 7):

• Gold price in India was Rs.4,891 per gram on 1st March. When compared to the closing price of the previous week, the rate of the yellow metal was down by Rs.76 in the country.
• Over the week, the yellow metal recorded its highest and lowest price for the month till date on 2nd and 6th March. A gram of 24-karat gold was retailed for Rs.4,931 and Rs.4,784, respectively.
• Gold closed the opening week of the month at Rs.4,785 per gram. The overall performance of the precious metal in the country witnessed a declining trend.

March 2021 - Week 2 (8 - 14):

• Gold rate in India was Rs.4,771 per gram in the second week of the month on 8 March and increased marginally to Rs.4,817 per gram on the following day.
• Due to constant fluctuations seen in the international market, the price of the metal dipped to Rs.4,777 per gram on 10 March and increased marginally yet again to Rs.4,796 per gram on 11 March. With the lower value of the dollar, gold prices increased to Rs.4,834 per gram on 12 March.
• Declining marginally to below the Rs.4,800 per-gram mark at Rs.4,799 per gram on 13 March, gold rates closed the week at Rs.4,817 per gram on 14 March.

March 2021 - Week 3 (15 - 21):

• In India, the price of gold at the start of the third week of the month was Rs.4,818 per gram. There was a minimal increase in the price of the yellow metal when the rate was compared to the closing price of the previous week.
• Gold rate slipped in the country the following day and recorded its lowest price for the month till date. A gram of the precious metal cost Rs.4,539 on the mentioned date.
• Over the next three days, the price of gold increased in the country before witnessing slight fluctuations on the last two days of the week. Gold price in India closed the week at Rs.4,839 per gram with the overall performance witnessing a declining trend.

March 2021 - Week 4 (22 - 28):

• The price of gold in India was Rs.4,838 per gram on 22 March, opening the fourth week of the month. The gold rate in India showed a marginal decline compared to the last week’s closing price. On 23 March, the rate of gold dipped to Rs.4,821 per gram and further to Rs.4,805 per gram on the following day.
• On 25 March, the price of the precious metal increased marginally to Rs.4,807 per gram and recovered in the market. On the following day, gold was priced at Rs.4,817 per gram increasing by Rs.10.
• The precious metal’s value increased due to a lower dollar value and decreased U.S. Treasury bond yields and was Rs.4,784 per gram on 27 March and closed the week at Rs.4,795 per gram on 28 March.

March 2021 - Week 5 (29 - 31):

• In India, the price of gold was Rs.4,807 per gram on 29th March. When compared to the closing price of the previous week, the price for every gram was up by Rs.12.
• Gold price in India slipped over the last two days of the month and closed at Rs.4,745 per gram.
• The overall performance of the precious metal in the country witnessed a declining trend.

Trend of Gold Rate in India for February 2021 (rates per gram of 24 karat gold)

February 2021 - Week 1 (1 - 7):

• Gold rate in India opened the month of February at Rs.5,232 per gram and showed a declining trend during the first week. The price of the metal was at its highest on the day and declined to Rs.5,228 per gram on 2 February.
• The price of the metal on 3 February was Rs.5,159 per gram and dipped to Rs.5,115 per gram with the rise in the dollar value in the international market.
• With a rising risk appetite and shift to the equities market, the gold rate declined to its lowest on 5 February at Rs.5,010 per gram and recovered marginally to Rs.5,115 per gram, closing at Rs.5,041 per gram on 7 February.

February 2021 - Week 2 (8 - 14):

• Gold prices in India opened the second week of the month at Rs.5,042 per gram on 8 February and declined marginally to Rs.5,039 per gram on 9 February due to fluctuations in the international prices.
• On 10 February, the yellow metal’s prices increased to Rs.5,106 per gram and further to Rs.5,171 per gram on fresh hopes of a stimulus package from the United States as well as in India.
• The value of gold dipped eased on 12 February at Rs.5,095 per gram and further to Rs.5,061 per gram and closed the week at Rs.5,062 per gram on 14 February.

February 2021 - Week 3 (15 - 21):

• In India, the price of gold at the start of the third week of February was Rs.5,062 per gram. There was no change in the rate when compared to the closing price of the previous week.
• While the price of the yellow metal remained unchanged over the next two days, it started to slip from 18th February onwards and recorded its lowest price for the month till date on 20th February when a gram of 24-karat gold cost Rs.4,927.
• Gold prices in India recovered slightly on the final day of the week and closed at Rs.4,944 per gram. The overall performance of the precious metal in the country witnessed a declining trend.

February 2021 - Week 4 (22 - 28):

• Gold prices in India opened the last week of the month at Rs.4,944 per gram on 22 February and increased marginally on 23 February at Rs.4,953 per gram due to fluctuations seen in the international market.
• On 24 February, the gold rate in India crossed the Rs.5,000 per-gram mark at Rs.5,019 per gram and dipped marginally on the following day to Rs.5,009 per gram. Due to the dollar value recovering in the market, the price of gold dipped to Rs.4,968 per gram on 26 February.
• Decreasing marginally be Re.1 to Rs.4,967 per gram on 27 February, gold closed the week and the month at a steady price of Rs.4,967 per gram on 28 February.

Trend of Gold Rate in India for January 2021 (rates per gram of 24 karat gold)

January 2021 - Week 1 (1 - 9):

• Opening the new year, the gold rate in India was Rs.5,079 per gram on 1 January and increased throughout the week on a lower risk appetite and higher demand for the bullion market. On 2 and 3 January, the price of the metal increased and held steady at Rs.5,099 per gram.
• The price of the metal on 4 January, increased to Rs.5,352 per gram and increased marginally to Rs.5,353 per gram on the following day. On 6 January, gold prices increased further to Rs.5,471 per gram and were the highest price of the week.
• At the end of the week, the price of the metal dipped to Rs.5,466 per gram on 7 January and dipped to Rs.5,417 per gram on 8 January and closed the week at the same price on 9 January.

January 2021 - Week 2 (10 - 16):

• Gold price in India at the start of the second week of January was Rs.5,286 per gram. When compared to the closing price of the previous week, the price for every gram was down by Rs.131.
• Over the next two days, the price of the yellow metal slipped in the country and a gram of the 24-karat gold was priced Rs.5,241 on 12th December.
• While the price of the yellow metal climbed on 13th December, it remained stagnant for the next two days before slipping on the final day of the week. Gold closed the week at Rs.5,251 per gram with the overall performance witnessing an inclining trend.

January 2021 - Week 3 (17 - 23):

• In India, gold prices dipped and opened the third week of the month at Rs.4,958 per gram which was the lowest price of the metal during the month. On 18 January, the price of the metal increased to Rs.5,150 per gram.
• On 20 January, gold rate in India crossed the Rs.5,200 per-gram mark at Rs.5,216 per gram and further increased to Rs.5,227 per gram on 21 January. The price of the metal inclined further to Rs.5,281 per gram on 22 January.
• However, due to the dollar value recovering in the market, gold prices declined and closed the week at Rs.4,988 per gram.

January 2021 - Week 4 (24 - 31):

• In India, a gram of the 24-karat gold was retailed for Rs.4,988 at the start of the final week of January was Rs.5,286 per gram. When compared to the closing price of the previous week, no change was recorded in the price of the yellow metal.
• The price of gold shot up in the country over the next two days and was priced Rs.5,246 per gram before recording a decline in the rates.
• Gold price in India witnessed an inclining trend in the last two days of the week and closed at Rs.5,231 per gram. The overall performance of the precious metal was one of incline.

Trend of Gold Rate in India for December 2020 (rates per gram of 24 karat gold)

December 2020 - Week 1 (1 - 6):

• Gold rate in India opened the first week of December at Rs.5,111 per gram. When compared to the closing price of the previous month, the price of the yellow metal was down by Rs.35 for every gram.
• The price of gold climbed over the next two days before slipping to its lowest price for the month till date on 4th December when a gram was retailed for Rs.4,860.
• Gold price recovered over the next two days and closed the opening week at Rs.5,265 per gram, the highest recorded price for the month till date. The overall performance of gold in the country witnessed an inclining trend.

December 2020 - Week 2 (7 - 13):

• In the second week of the month, the gold rate in India opened at Rs.5,266 per gram on 7 December and dipped marginally to Rs.5,243 per gram on the following day. The price of the metal increased to Rs.5,319 per gram on 9 December.
• Hitting its highest on 10 December, gold price was at Rs.5,320 per gram and saw a substantial dip on 11 December at Rs.5,243 per gram.
• After holding steady at the same price on 12 December, the price of gold increased marginally and closed the week at Rs.5,254 per gram on 13 December, recording an overall weekly incline.

December 2020 - Week 3 (14 - 20):

• In India, the price of gold was Rs.5,255 per gram at the start of the third week of December. Gold price witnessed a minimal increase when the rate was compared to what was charged on the final day of the previous week.
• Gold price slipped in the country the following day and a gram was retailed for Rs.5,232. The price remained unchanged on 16th December before recording an incline in the rates.
• Gold price in India closed the week at Rs.5,341 per gram. This was the highest recorded price of the yellow metal for the month till date. Gold’s overall performance witnessed an inclining trend in the rates.

December 2020 - Week 4 (21 - 27):

• Gold rate in India opened the fourth week of December at Rs.5,342 per gram on 21 December and showed an overall declining trend for the week, after increasing to its weekly high at Rs.5,373 per gram on 22 December.
• However, due to vaccine optimism, the price of the metal fell to Rs.5,362 per gram on the following day, dipping further to Rs.5,319 per gram on 24 December.
• On 25 December, the price of the metal was Rs.5,320 per gram, increasing marginally to Rs.5,321 per gram and closed the week on 27 December at Rs.5,322 per gram as investors awaited on the decision by the U.S. government on the stimulus package.

December 2020 - Week 5 (28 - 31):

• The price of gold in India at the start of the final week of December was Rs.5,323 per gram. There was a minimal increase in the price of the yellow metal when the rate was compared to the closing price of the precious week.
• Gold price in India climbed gradually over the week and closed at Rs.5,331 per gram.
• The overall performance of gold in the country witnessed an inclining trend in the rates.

Trend of Gold Rate in India for November 2020 (rates per gram of 24 karat gold)

Trend of Gold Rate in India for October 2020 (rates per gram of 24 karat gold)

Factors Affecting Gold Price in India

Trading in gold is a preferred investment mode of investors who are financially savvy and have the required risk-appetite for this kind of market. It requires prudent monitoring of investments as gold prices are subject to change for many reasons. Maintaining or closing a position in this market depends on how well an investor can track, analyze and synthesize pricing information.

Some of the key factors that affect gold prices are outlined below:

1. Import costs: Since demand is primarily met through gold imports, import costs affect gold rate in India. Higher the costs, higher the price of gold.
2. Interest rates on bank fixed deposits: Bank fixed deposits are the go-to investment option for Indians. It is only rivalled by investments in gold. When FD rates fall, investors prefer moving their money to gold. Hence, the demand for gold rises and thereby prices.
3. Strength of the US dollar: When the US dollar weakens, gold rates in India rise and when the US dollar strengthens, gold prices in India fall. This is because central banks which maintain US dollar reserves tend to hedge against risks of a devaluing dollar by investing in gold. This pushes prices up. Also, India buys its gold from foreign countries and when the US dollar strengthens against the Indian rupee, it makes purchases of gold (usually done in USD), more expensive.
4. Global economic stability: Gold prices rise during times of economic instability as gold is considered safer asset that others and people tend to move their money out of riskier assets into gold. Other assets bear the risk of being significantly devalued whereas gold which is has high liquidity continues to hold value even during times of crisis.
5. Seasonality: In India, demand for gold during festivals, marriages and other auspicious occasions. Prices tend to be higher during these times.
6. Inflation: Since gold is bought to hedge against inflation, gold prices tend to rise when inflation is on an upward trend.
7. International prices: In general, when gold rates are on an upward trend, globally, gold prices in India also move upwards. Many central banks, especially in the US and in Europe hold huge gold reserves. When these banks or other financial organizations buy more gold, prices move upward.

   International gold prices are hugely affected by the prices fixed on the London Gold Market, twice a day i.e. once at 10:30 a.m. and once at 3 p.m. USD is the currency generally used when quoting prices although it is fixed in Pound Sterlings and Euros as well.

8. Production costs: Mining companies increase prices at times on account of production costs. This is reflected in the price of gold imported in India.
9. Supply: Domestic production and supply is limited in India. Supply constraints can push prices upwards. Similarly, lower supplies of gold globally can make the metal dearer in India.

Gold Rate is Different in Different Cities in India?

Gold rates vary across different cities in India. Key reasons for this are:

1. Taxes:State taxes differ from state to state. Some states levy higher taxes than others. This is one of the reasons why gold is more expensive in some cities than others.
2. Demand: Owing to different population sizes and varying demographics, demand for gold also varies. Discounts are usually offered on larger volumes. So gold prices in cities like Mumbai are lower given larger quantums of transactions.
3. Carriage: Indian imports a bulk of its gold requirements by sea. Gold prices at port cities e.g. Chennai are lower than those in interior cities e.g. Delhi because of the absence of inland transport charges.
4. Local associations: Cities have their own local gold associations which have a say in setting the prices. This will also account for differences in gold prices between cities.

Gold measurements

Gold is measured in grams and troy weight. (Troy ounces, million ounces, grams, kilograms, tonnes, short tonne, metric tonnes, tolas etc.)

Karat is used to represent purity when gold is mixed or alloyed with other base metals such as copper. 24K or 24 karat gold is pure gold. Fineness is to represent gold parts per thousand. (18K gold would be 18 of 24 karats out of 1,000 parts or a fineness of 750).

What is the Difference Between Carat and Karat?

Carat- It is a unit of weight used to measure precious gems such as diamonds as well as pearls. 200 milligrams or 0.2 grams make a metric carat. Carats are abbreviated to ct. Carats are often mistaken to denote size.

Karat- It is a unit of finesse or purity used to measure gold. 24 karat gold denotes pure gold. When gold is mixed with another metal the purity is diluted. The purity is then expressed as the parts of gold out of 24. E.g. 22 karat gold (mixed with copper) will be 22 parts gold and 2 parts copper. Gold being soft is alloyed with another metal, usually copper, to attain form. Karat is abbreviated to kt.

What is the Difference Between 22k and 24k Gold?

Karats represent the finesse or purity of gold. Gold being a very malleable metal is too soft to attain form on its own. It is usually alloyed with another metal, mostly copper, in order to attain form. The purity of the gold is then represented in karats as the parts of gold present out of 24.

24 karat gold is 99.99% pure gold whereas 22 karat gold is 91.67% pure. 22 karat gold means, the alloy consists of 22 parts gold and 2 parts of the alloyed metal.

24k gold is priced higher than 22k gold being purer, however, some people prefer 22k gold being more durable. Import duties are generally lower for 24k gold and higher for 22k gold.

Demand for Gold in India

India’s primary demand for gold is for use as jewelry. Investments are the next greatest demand driver. Unlike China, the next highest consumer of gold in the world, whose primary demand for gold is for industrial purposes, India’s industrial usage of gold is minimal.

Domestic production of gold in India is limited and, given its strong demand, India relies heavily on gold imports every year. Currently, the Kolar mines in Karnataka are the only operational mines in India, grossly unable to meet domestic demand.

Gold imports in India constitute the next largest chunk of total imports after crude oil. Of late, the government has increased its focus on curbing the negative impact of heavy gold imports viz. a widening trade deficit and rupee devaluation.

Why is Gold Considered so Valuable?

Gold is considered valuable for many reasons, mainly

1. Value: Although gold prices fluctuate in the near to medium term, its value tends to rise in the long-term. For this reason, people invest and hold on to gold for a long period of time. Gold tends to not be affected by geopolitical or economic turmoil. It is valuable during emergencies providing liquidity as it is easily traded. It is a hedge against inflation as well and acts as a great value addition to an investor’s portfolio.
2. Industrial uses: Gold is used in certain manufacturing processes. Although not comparable to retail consumption, many countries use gold for production purposes.
3. Versatile metal:Gold is available in many useful forms making it a versatile investment. It is popularly used as jewellery and other gift items and held in the form of coins, bars or bullion. It is also available in edible form or woven into fabrics. Besides all this, paperless gold instruments are now being used to represent physical gold.
4. Gold reserves:Gold is maintained as reserves to back paper currencies by many countries. These paper currencies attain their values based on the value of the gold reserves that back them.
5. Limited supply: The amount of gold that can be mined and produced in the world is limited. Due to this, gold attains more value as an irreplaceable asset.
6. Tradition: Gold has traditionally been used for financial transactions. This has passed down through the ages and prevails even today.

Indian gold reserves

This is the amount of gold held by India’s Central Bank. Referred to as store value, it is against these reserves that currency is printed and circulated in the economy. Besides providing value to currency, these reserves act as security for amounts due to depositors or trading partners.

Gold as an Investment in India

Indians primarily invest in gold as a means to counter inflation. While the price of gold may fluctuate over time, the value of this metal remains relatively stable, especially in the long-run. Returns on gold are generally higher in the long-run as compared to other asset classes. Real estate and equity markets have proven to be the exceptions but for most Indian investors, gold still forms a huge part of their investment portfolios.

Traditionally, investment in gold has been in the form of jewelry gold bars or gold coins. As financial markets developed over the years, new investment avenues have opened up. Gold is now increasingly being invested in through Gold ETFs (Exchange Traded Funds) or through mutual funds which invest in gold or through stocks of companies that are in the business of gold/gold-related activities. Gold is also traded as a commodity on commodity exchanges.

Investments in gold commodities, ETFs, funds and stocks can be done online adding another dimension to gold investments in India.

Gold Trading as a Commodity in India

Gold is traded through spot contracts or derivative contracts i.e. investors can trade in gold without possessing gold in its physical form.

• Gold spot contracts are whereby gold is bought and immediately delivered (i.e. sold and delivered right away).
• Gold futures contracts are whereby gold is bought and sold at a later date as per the contract. Unlike most other commodities, gold futures are traded at spot prices and not at prices influenced by demand and supply.

Gold is traded as a commodity on three major commodity exchanges in India:

1. Multi Commodity Exchange (MCX)
2. National Commodity & Derivatives Exchange (NCDEX)
3. National Spot Exchange (NSEL)

Gold Futures Contracts on MCX

MCX is India’s leading commodities exchange and a leading exchange to trade in gold. Contracts traded here offer great liquidity and offer investors the option of contracts in four different sizes as outlined below with their other key features:

Gold

• Ticker GOLD
• Trades during 6 months of the year i.e. February, April, June, August, October, December (Monday - Saturday)
• 1 contract = 1 kg of gold
• Initial margin: 4%
• Daily price limit: 3%
• Upper limit on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
• Quality: 995 purity, 999 purity

Gold Mini:

• Ticker GOLDM
• Trades in all 12 months i.e. January to December (Monday - Saturday)
• 1 contract = 100 grams of gold
• Initial margin: 4%
• Limits on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
• Quality: 995 purity, 999 purity

Gold Guinea:

• Ticker GOLDGuinea
• Trades in all 12 months i.e. January to December
• 1 contract = 8 grams of gold
• Limits on positions: Up to 2 MT or up to 250,000 contracts at one time

Gold Petal:

• Trades in months as specified by the exchange
• 1 contract = 1 gram of gold
• Limits on positions: Up to 2,000,000 contracts at one time