Gold Rate Today

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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.

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

May 2020 - Week 1 (1 - 9):

• In India, gold was priced at Rs.4,476 per gram at the start of the opening week of May. With investors booking profits due to optimism that economies may ease coronavirus lockdowns, the rate of the gold saw a decline of Rs.237 for every gram when compared to the closing price of April.
• Gold prices improved the next day before recording its highest price for the month on 4th May with a gram of the 24-karat gold costing Rs.4,702 in the country. The increase in the price was accounted to rising tensions between the United States and China over the origin of coronavirus pandemic.
• The rate of the gold fluctuated over the next few days due to a variety of reasons like virus-led curbs easing, equities rising, U.S. jobless claims report etc. Gold closed the first week at Rs.4,620 per gram with the overall performance showing an incline in the prices.

May 2020 - Week 2 (10-16):

• Opening the second week of the month at Rs.4,621 per gram on 10 May, gold saw an overall incline in its prices throughout the week in the country, increasing to Rs.4,622 per gram on 11 May. The rise in prices was majorly due to the decrease in risk appetite amongst investors with the rise in the number of COVID-19 cases all over the world.
• On 12 May, the price of the metal increased to Rs.4,636 per gram and further increased to Rs.4,695 per gram on 13 May. With a sudden surge of cases all over the world along with a resurgence of cases in many parts of the world, the risk appetite of the investors was down and safe-haven demand of the metal had increased considerably.
• Increasing marginally by Re.1, the price of the yellow metal had increased to Rs.4,696 per gram on 14 May. On 15 May, the price of the precious metal saw a considerable incline in the markets, to be priced at Rs.4,721 per gram and ended the week after hitting its highest price of the month and the week at Rs.4,781 per gram on 16 May recording an overall incline.

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

April 2020 - Week 1 (1 - 4):

• In India, as the world heads into the fourth month of fighting the novel pandemic, Coronavirus, gold prices have remained steady since the last week of March. With investors shifting to cash by selling off their assets, the price of the gold had dipped considerably in the last month.
• In April, as investors shifted to the bullion market for its safe-haven demand as the markets are still affected, the price of gold in the country opened the month of April at Rs.4,253 per gram and remained steady until the end of the first week of the month at Rs.4,253 per gram.
• Even though the gold rate had increased in the global markets and fluctuated in the week, gold prices have been steady in the country with no overall gain or loss in the first week of the month.

April 2020 - Week 2 (5 -11):

• Gold price in India started the second week of April at Rs.4,253 per gram. There was no change in the rates when compared to the previous week’s closing price. The opening price was the lowest recorded price of the precious metal for the month of April till date.
• The rates of the yellow metal increased in the country after staying constant on 6th April. The increase in the prices was due to bleak US nonfarm payrolls data which underscored the deepening economic impact of Covid - 19 pandemic. As of 8th April, a gram of the 24-karat gold was retailed for Rs.4,463.
• The rates declined the next day before improving gradually and recording its highest for the month till date on the last day of the week i.e., 11th April. A gram was retailed for Rs.4,461 in the country on the mentioned date as the rates climbed due to safe haven buying ahead of a long weekend and a crucial meeting of top oil producers. Gold witnessed an incline in the prices over the week.

April 2020 - Week 3 (12 - 18):

• In the third week of the month, gold prices opened at Rs.4,462 per gram on 12 April and increased throughout the week. With the effect of COVID-19 increasing on the economy all over the world and affecting more people on a daily basis, traders shifted to the bullion market due to rising fears of the virus. On 13 April, the price of the metal increased marginally to be priced at Rs.4,498 per gram as the measures taken by the United States Federal Reserve kept the bullion market in check. With Spot gold prices fell marginally along with U.S. gold futures.
• On 14 April, the price of the metal increased to Rs.4,513 per gram and further to be priced at Rs.4,581 per gram on 15 April. The continuous rise in prices was due to economic worries by the traders because of Coronavirus and its effect on the world. With speculations of a recession in order, the price of the gold showed a continuous inclining trend hitting its highest price of the week and month at Rs.4,611 per gram on 17 April.
• At the end of the week, the price of the metal dipped to be priced at Rs.4,465 per gram as United States President, Donald Trump announced plans to reopen the United States economy which provided a much-required boost in the risk appetite of investors. At the end of the week, gold closed at Rs.4,465 per gram on 18 April.

April 2020 - Week 4 (19 - 25)

• Gold price stood at Rs.4,456 on 19th April in the country. There was a decline of Rs.9 for every gram when compared to the closing price of the previous week.
• The rates slipped to Rs.4,446 per gram by 22nd April in the city as investors scrambled for hard cash in order to cover losses in other asset classes mainly driven by a crash in the oil market as Covid-19 continued to wreck economies.
• Over the last three days of the week, the rates of the yellow increased in the country and closed the week at Rs.4,592 per gram. The increase in the prices was accounted to expectations for more stimulus from central banks to limit the economic damage caused by coronavirus pandemic. There was an incline in the prices of the precious metal over the week.

April 2020 - Week 5 (26 - 30):

• Opening the last week of the month, gold prices in the country was at Rs.4,603 per gram on 26 April. The price of the metal in the international market recorded continuous dips in its price due to various factors in the international market. The price of the metal increased to Rs.4,780 per gram on 27 April in the country even though it dipped majorly in the international market with possible hints of lockdowns easing in the United States of America.
• The price of the metal on 28 April dipped marginally to Rs.4,766 per gram, dipping marginally from its previous day’s closing price. With investors speculating ease of lockdowns in the country as well, higher risk sentiment drove focus off the bullion market and into the stock market. On 29 April, the price of the metal hit its highest of the week and the month at Rs.4,826 per gram amidst a declining trend in the international market.
• On the last day of the month and the week, the price of the metal dipped to be priced at Rs.4,703 per gram. As international prices of the metal recovered from the losses with various banks offering a stimulus to restart the economy, the price of the metal increased in the international market.

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

March 2020 - Week 1 (01 - 07):

• In India, gold prices opened the month of March at Rs.4,274 per gram and showed an overall weekly incline. This was majorly due to the effect of Coronavirus on the economy. The metal’s price was steady on 2 March at Rs.4,274 per gram. The gold rates increased throughout the week with a lower risk appetite amongst investors.
• On 3 March, the price of the gold increased marginally to Rs.4,284 per gram. The price of the gold increased with expectations from investors on another rate cut by the United States Federal Reserve in order to tackle the effect of the Coronavirus on the economy of the world. With the safe-haven demand for gold increasing, the gold rate increased substantially on 4 March at Rs.4,305 per gram, further increasing to Rs.4,452 per gram on 5 March.
• On 6 March, gold was set to be valued at its highest in 8 years amidst renewed fears of the Coronavirus with an increasing number of cases being reported all over the world along with adding to the death toll. The price of the gold on 6 March was Rs.4,436 per gram and further increasing by Rs.100 to Rs.4,536 per gram on 7 March. The effect of the virus was also seen on the crude oil markets which made investors shift to the bullion market. The metal closed the week at the same price recording a weekly incline.

March 2020 - Week 2 (8 - 14):

• Gold prices in the country stood at Rs.4,510 per gram on 8 March. Compared to the closing price of the previous week, there was a drop of Rs.26 per gram in the rates of the yellow metal. Even though gold prices jumped past the level of $1,700 per ounce the next day in the international market, the rates remained unchanged in India.
• The rates slipped to Rs.4,499 per gram on 10 March as some worries about the growth outlook eased and the dollar jumped following U.S president Donald Trump’s pledge to take steps to shield the economy from coronavirus.
• The rates unchanged for the next day but slipped considerably from 12 March as concerns about the economic impact due to coronavirus increased after world health officials declared it as a pandemic and countries took measures to combat the spread of the virus by restricting public gatherings. Gold closed the week at Rs.4,237 per gram which was the lowest recorded price for the metal in the month till date. The overall performance witnessed a declining trend in the prices.

March 2020 - Week 3 (15 - 21):

• After opening at Rs.4,237 per gram, gold prices in India saw an overall weekly decline in prices in the third week of the month at 14 March and remained steady till 15 March. The gold prices fell in the market with investors all around the world looked to liquidate their assets and turn it into cash in order to survive the outbreak of Coronavirus and its effect on the economy.
• On 16 March, the price of the gold was steady at Rs.4,237 per gram and increased marginally to Rs.4,247 per gram on 17 March. However, with Palladium hitting the lowest price in 18 years, gold prices dipped extensively on 18 March to be priced at Rs.4,153 per gram. With the United States Federal Reserve announcing emergency rate cuts and failing to get a grip on gold prices, the measures taken by the European Central Bank resulted in gold prices increasing to Rs.4,226 per gram on 19 March.
• However, on 20 March, with traders getting back to heavy liquidation of assets, gold prices fell yet again to hit its lowest price in the week at Rs.4,111 per gram on 20 March. The price of the gold, however, bounced back marginally on the last day of the week and closed at Rs.4,190 per gram in the country.

March 2020 - Week 4 (22 - 31):

• Gold prices in the country opened the fourth week of March at Rs.4,253 per gram. The rates were up by Rs.63 for every gram when compared to the previous week’s closing price.
• Having opened the week at Rs,4,253 per gram, the rates of the yellow metal didn’t see any change over the week in the country. The rates in the international market however did fluctuate due to a variety of reasons. Over the week, investors liquidated their positions in the safe-haven metal despite stimulus measures being announced to combat the economic damage caused by the coronavirus pandemic.
• The rates of the yellow metal closed the week at the opening price of the week i.e., Rs.4,253 per gram as the country went into a 21-day lockdown starting March 25. Gold prices witnessed a declining trend in the country.

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

February 2020 - Week 1 (1 - 9):

• In the first week of February, the price of gold opened at Rs.4,169 per gram and fluctuated throughout. At the beginning of the week, the metal was all set to touch its 5-month high because of the effect of the Coronavirus on the global economy.
• The metal also hit its highest price in the month on 4 February at Rs.4,195 per gram but not before slipping by 1% as the Central Bank in China cut down the reverse repo rates in the country to ease the inflow of liquidity into the economy. The price of the precious metal recorded a lower price in the country at Rs.4,127 per gram with strong economic data recorded in the United States of America.
• After hitting its lowest price of the week on 7 February at Rs.4,116 per gram due to reports of an anti-Coronavirus drug, the metal bounced back on the next day at Rs.4,148 per gram as fears of the Coronavirus increased throughout the world with a greater number of cases and deaths. The metal closed the week at Rs.4,148 per gram.

February 2020 - Week 2 (10 - 16):

• Gold opened the second week of February at Rs.4,148 per gram in the country. There was no change in the rates of the precious metal when compared to the closing price of the previous week.
• Over the week, the rates saw a lot of fluctuations in the country. Gold prices dipped to Rs.4,142 per gram on 13 February after dollar eased from a four-month high and stocks faltering.
• The rates of the yellow metal increased over the country in the latter half of the week. The increase in the prices was accounted to investors betting on the safe-haven metal to hedge against the economic impact of the coronavirus outbreak. Gold which witnessed an incline in the prices over the week closed at Rs.4,211 per gram.

February 2020 - Week 3 (17 - 23):

• In the country, the price of the metal opened the last week of the month at Rs.4,211 per gram and held steady on 17 February 2020. During the week, gold trends showed an inclining trend in its prices due to increased safe-haven demand amongst investors. The price of the metal dipped marginally on 18 February to Rs.4,195 per gram as the value of the dollar increased marginally.
• On 19 February, gold held steady at Rs.4,195 per gram and increased marginally to Rs.4,237 per gram on 20 February as investors shifted to the bullion market amidst renewed fears of the Coronavirus and its effect on the global economy. The price of the metal increased to Rs.4,268 per gram on 21 February.
• Gold prices on 22 February hit the Rs.4,300 per gram mark and due to safe-haven demand and increased to hit not only the monthly high but also its 7-year high in the global market. The price of the metal on 23 February was Rs.4,368 per gram in the country and closed the week at the same price.

February 2020 - Week 4 (24 to 29):

• In the country, the yellow metal opened the last week of February at Rs.4,368 per gram. There was no change in the rates when compared to the previous week’s closing price.
• The rates jumped to Rs.4,394 per gram after staying constant for the next day as the US dollar edged higher as the spread of coronavirus beyond China drove fears of a pandemic and weighed on Asian currencies and global equities.
• Gold prices saw fluctuations over the last three days of the week in the country. This was accounted to investors seeking refuge in safe-haven assets and raised hopes of interest rate cuts by major central banks as coronavirus scare spurred safe-haven flows towards the bullion.
• In India, gold closed the week at Rs.4,368 per gram with the overall performance showing an inclining trend in the prices.

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

January 2019- Week 1 (01 - 05):

• Gold prices opened the new decade in India at a price of Rs.3,995 per gram with no changes since 31 December 2019. The metal is supposedly set for its best year till date since 2010 based on multiple global factors.
• As gold prices have increased by over 19% in 2019, the metal increased to Rs.4,011 per gram on 2 January 2020 as the value of the dollar dipped in the global market. The dollar was under pressure at the beginning of the year as traders doubted its capability to grow when compared to trade in metal.
• On 4 January, the price of the metal decreased marginally to Rs.4,069 per gram. However, on 5 January, the metal increased yet again, closing the first week of the decade at Rs.4,111 per gram with an overall incline.

January 2019- Week 2(06 - 12):

• Gold prices in the country opened the second week of January at Rs.4,111 per gram. Compared to the previous week’s closing, there was no difference in prices. However, on 7 January, the price of the metal increased to Rs.4,179 per gram due to persisting tensions between the United States of America and Iran.
• There was a slight dip in prices on 8 January to Rs.4,121 per gram as investors awaited a reaction from the United States President, Donald Trump. As the President decided to ease the tensions, the price of the metal dipped further as the stock markets recovered. Gold prices hit the weekly high at Rs.4,211 per gram on 9 January.
• In the second half of the week, gold prices saw a major dip by Rs.105 per gram and were priced at Rs.4,106 per gram. As the tensions between Iran and the United States of America eased further, traders shifted back to the market for riskier bets. At the end of the week, gold was priced at Rs.4,095 per gram.

January 2019- Week 3(13 - 19):

• For the third week of January, gold prices were steady opening at Rs.4,095 per gram. In the global markets, the trend of the metal was at a low during renewed trade deal optimism between China and the United States of America. The interim Phase 1 deal between the two countries was signed on 15 January.
• On 14 January, the price of the metal dipped marginally at Rs.4,074 per gram as the investors eagerly waited for the trade deal to be signed and the tensions to ease. On 15 January, the metal recorded the lowest price of the week at Rs.4,037 per gram as the interim trade deal was signed between the two countries. A positive economic data in the United States of America also played a factor in the dip in gold prices.
• On 16 January, the price of gold increased marginally to Rs.4,074 per gram in the country amidst a falling trend overseas. This was majorly due to a steady demand of the metal even though investors were fueled with a higher risk appetite post the signing of the trade deal. At the end of the week, gold prices closed the week at Rs.4,074 per gram.

January 2020 - Week 4 (20 - 26):

• Gold prices stood at Rs.4,074 per gram in the country on 20 January. The rates were unchanged when compared to what was charged at the end of the previous week.
• The rates increased to Rs.4,116 per gram on 22 January as investors took refuge in the safe-haven metal rates amid concerns regarding the outbreak of the deadly coronavirus in China and increasing tensions in the Middle East.
• With investors assessing the risk of coronavirus becoming a global epidemic, the rates of the yellow metal slipped to Rs.4,079 per gram on 23 January. The rates closed the week at Rs.4,142 per gram with the overall performance showing an incline in the prices.

January 2020 - Week 5 (27 - 31):

• In the last week of January, the price of gold opened at Rs.4,142 per gram increasing marginally from the previous week’s closing price. Due to the outbreak of the Coronavirus in China, the price of the metal increased through the week due to its safe-haven appeal.
• Gold prices fluctuated in the first half of the week at Rs.4,158 per gram on 28 January and then dipped to Rs.4,153 per gram on 29 January. This was majorly due to the market taking stock of the virus’ impact on the economy. Investors also awaited on the decision to be made by the United States Federal Reserve on further rate cuts.
• On 30 January, the price of the metal hit its weekly low at Rs.4,116 per gram amidst global trends showing positive trends. Due to low local demand and investors awaiting the decision by the United States Federal Reserve, the price of the metal dipped despite increasing widely in the global markets. On 31 January, the price of the metal increased in India and closed at Rs.4,169 per gram.

Trend of Gold Rate in India for December 2019 (rates per gram of 24 karat gold)

December 2019- Week 1 (1 – 8):

• In India, gold prices stood at Rs.3,906. witnessed a declining trend in the first week of December. The rates opened the week at Rs.3,906 per gram.
• The rates declined in the first four day of the week as there were flipping reports on the US – China trade deal. However, with the US president stating that the talks were going in the right direction, the rates jumped to Rs.3,927 per gram on 5 December.
• Gold closed the week at Rs.3,875 per gram in the national capital. This was the lowest recorded price for the fuel in the first week.

December 2019- Week 2 (9 – 15):

• Gold started the second week of December at Rs.3,875 per gram. The rates didn’t see any change in the prices when compared to the previous week’s closing price.
• The rates dropped in the next couple days before remaining stagnant for a day as investors awaited clarity on whether a next round of US tariffs on Chinese imports would take effect.
• The prices were at its highest for the week on December 13 as the safe-haven appeal was boosted due to political uncertainties in the world’s biggest economy. The yellow metal closed the week at Rs.3,885 per gram with the overall performance trending downwards.

December 2019- Week 3 (16 – 22):

• In the country, gold opened the third week of the month at Rs.3,885 per gram. The price of the metal was holding steady through the previous week due to various global factors and as investors awaited clarity on the trade deal between the United States of America and China.
• After decreasing by Rs.10 on 17 December to Rs.3,875 per gram, the metal’s price steadied in the market. On 19 December, the price of gold increased to Rs.3,896 per gram as the Senate House voted to impeach United States President, Donald Trump on obstruction charges and abuse of power.
• By the end of the week, gold prices held steady decreasing marginally to Rs.3,890 per gram and then steadying to Rs.3,896 per gram on 22 December. The metal closed the week at an increased price of Rs.3,901 per gram due to persistent doubts on the U.S.-China deal.

December 2019- Week 4 (23 - 29):

• In the country, gold opened the third week of the month at Rs.3,885 per gram. The price of the metal was holding steady through the previous week due to various global factors and as investors awaited clarity on the trade deal between the United States of America and China.
• After decreasing by Rs.10 on 17 December to Rs.3,875 per gram, the metal’s price steadied in the market. On 19 December, the price of gold increased to Rs.3,896 per gram as the Senate House voted to impeach United States President, Donald Trump on obstruction charges and abuse of power.
• By the end of the week, gold prices held steady decreasing marginally to Rs.3,890 per gram and then steadying to Rs.3,896 per gram on 22 December. The metal closed the week at an increased price of Rs.3,901 per gram due to persistent doubts on the U.S.-China deal.

Trend of Gold Rate in India for November 2019 (rates per gram of 24 karat gold)

November 2019- Week 1 (01-03):

• In November, gold rate in India opened at Rs.3,892 per gram due to trade uncertainties and was set for a rise in prices for the second continuous week. Apart from this, investors further speculated for a further cut in interest rates by the Federal Reserve.
• However, due to strong Chinese factory data, there were renewed hopes on profit as well as the trade talks. The applications for unemployment benefits were on the rise in the United States of America. Banking on strong data, the gold price in India marginally decreased to Rs.3,890 per gram on 2 November.
• The price of gold in India was steady on 3 November and ended the first week of the month at the same price of Rs.3,890 per gram based on strong Chinese data and positive trend of U.S. jobs.

November 2019- Week 2 (04-08):

• Gold prices in the country saw a declining trend in the second week of the month. Opening at Rs.3,892 per gram, at the opening of the second week, decreased to Rs.3,886 per gram due to strong job data in the United States of America.
• After further decreasing to Rs.3,879 per gram on 5 November, due to renewed optimism in the trade deal between China and the United States of America, gold prices decreased further.
• On 6 November, the price of the metal decreased to Rs.3,840 per gram and increased marginally to Rs.3,860 per gram on 7 November as stocks were paused due to trade uncertainty. The metal closed at a one-month low of Rs.3,817 per gram.

November 2019- Week 3 (09-17):

• In India, the price of gold saw a fluctuating trend in the third week of the month. Opening the week at Rs.3,812 per gram, the price of the metal dipped to Rs.3,806 per gram on 11 November due to the positive developments in the trade talks between the United States of America and China.
• On 12 November, gold prices touched a 3-month low at Rs.3,803 per gram in the country due to an upbeat risk appetite from investors as they shifted to the stock market in hopes of positive trade talk developments.
• Gold prices recovered marginally on 13 November at Rs.3,816 per gram as investors awaited the speech by President Donald Trump. As there were no signs of the trade deal being signed, the investors shifted to the bullion as a safe-haven asset. The price of the metal increased and closed the week at Rs.3,827 per gram.

November 2019- Week 4 (18 - 24):

• Gold prices showed a negative trend in the fourth week of the month due to renewed optimism in the trade deal between the United States of America and China. On 18 November, the price of the metal opened the week at Rs.3,818 per gram.
• However, on 19 November, the price of the metal increased to Rs.3,841 per gram as an impeachment inquiry against the United States President Donald Trump hurt the ongoing trade talks between the two economic superpowers.
• On 20 November, the price of the metal was holding steady with a marginal decrease at Rs.3,837 per gram as United States President threatened fresh tariffs on Beijing and as the United States Senate supported the ongoing protests in Hong Kong. Overall, the metal saw a decline and closed the week at Rs.3,821 per gram.

November 2019- Week 5 (25 - 30):

• Gold prices in the country saw a lot of fluctuations in the fifth and final week of November after opening the week at Rs.3,806 per gram. Compared to the previous day’s closing price, the rates dipped by Rs.15 for every gram.
• The rates of the yellow metal fell further over the week as traders decided to wait for further developments regarding the trade deal between the United States and China. Every gram of the 24-carat gold was traded for Rs.3,803 on 29 November. This was the lowest recorded price for the precious metal in the month.
• In India, gold prices closed the week at Rs.3,828 per gram as no clear indication was provided by either country regarding the trade deal. Gold’s overall performance was trending downwards due to such reasons.

Trend of Gold Rate in India for October 2019 (rates per gram of 24 karat gold)

October 2019- Week 1 (1-6):

• After opening at Rs.3,722 per gram, gold rate in India surged during the week, bolstered by festive demand and a rise in overseas demand which raised prices.
• The gold price in India rose to Rs.3,818 per gram on 3 October as fresh trade tensions and tariffs on EU goods saw equities tumble and increased demand for bullion.
• Gold Prices continued to climb for the rest of the week, as weak U.S. jobs data and rising domestic demand buoyed sales, with the metal ending the week at Rs.3,830 per gram.

October 2019- Week 2 (7-13):

• Gold opened the month of October at Rs.3,722 per gram and saw a gradual positive trend in prices due to a heavy local demand due to the festive season in the country along with an increased demand overseas.
• The gold rate in India was at Rs.3,848 per gram on 9 October and remained stagnant on 10 October as well due to Turkey launched a military operation in Syria due to enhanced tensions in the Middle East.
• On 13 October, the price of gold saw a marginal decrease to be priced at Rs.3,826 per gram due to easing global demand as well as ease in tensions in the trade war between the United States of America and China.

October 2019- Week 3 (14-20):

• After closing the previous week at Rs.3,826 per gram, the price of gold opened the 3rd week of the month with a low at Rs.3,822 per gram due to renewed optimism around the trade talks.
• However, on 15 October, the price of the metal increased to Rs.3,856 per gram, hitting its weekly high ahead of the Brexit talks.
• As the week went proceeded, the price of gold steadied and eventually decreased marginally due to ease in Brexit anxiety and renewed trade talk optimism.

October 2019- Week 4 (21-27):

• Gold prices in India opened week 4 of October at Rs.3,845 per gram on 21 October and quickly dipped to Rs.2,829 per gram on 22 October due to renewed cues on trade talks and the Brexit deal between the European Union and Great Britain.
• After increasing marginally on 23 October being priced at Rs.3,846 per gram, the precious metal held steady on the following day as well mainly due to uncertainties on the Brexit deal which made investors shift to the bullion.
• However, on 25 October, the yellow metal nearly reached its 2-week high at Rs.3,871 per gram as due to weak economic data indicated another rate cut by the United States Federal Reserve. Apart from this, due to a rise in local demand ahead of the festival of Diwali, prices of gold rose.

October 2019- Week 5 (28-31):

• In the last week of October, the price of gold was Rs.3,869 per gram recording a marginal fall in prices after closing the previous session at Rs.3,872 per gram. This was majorly due to an ease in market tensions as the trade talks between China and the United States of America eased.
• The price of the precious metal further decreased on 29 October to Rs.3,836 per gram as trade talks hopes resulted in equities showing positive trends. However, gold prices increased marginally to Rs.3,847 per gram on 30 October due to the possible delay in trade talks resulting in increased focus on rate cuts by the United States Federal Reserve.
• Gold prices showed positive signs on 31 October rising to Rs.3,857 per gram as the United States Federal Reserve cut the interest rates as expected by the investors due to weak economic data. The precious metal closed the week and month at the same price.

Trend of Gold Rate in India for September 2019 (rates per gram of 24 karat gold)

September 2019- Week 1 (1-8):

• After a period of steady growth, gold price in India opened the week at Rs.3,876 per gram and rose on a weak rupee and strong overseas cues.
• Gold price in India climbed to Rs.3,953 per gram on 4 September as weak U.S. jobs data renewed economic slowdown fears, though a rise in equities resulted in the metal trading lower at Rs.3,885 per gram on 6 September.
• A possible economic stimulus bolstered equities as bullion fell sharply, with the metal ending the week at Rs.3,855 per gram on 8 September.

September 2019- Week 2 (9-15):

• Gold rate in India continued their downward slide this week, opening at Rs.3,842 per gram on reduced retail demand and declining investor interest.
• A rise in risk appetite and a rising dollar rate dented bullion appeal as the gold dropped to Rs.3,799 per gram on 12 September, though jeweller demand remained steady ahead of the festive season.
• A resolution to the U.S.-China trade war bolstered equities, which capped gold gains as the gold price slid to Rs.3,763 per gram on 15 September.

September 2019- Week 3 (16-22):

• Gold price in India continued their downward slide this week, opening at Rs.3,807 per gram on reduced retail demand and declining investor interest.
• A rise in risk appetite and a rising dollar rate dented bullion appeal as the gold rate in India dropped to Rs.3,799 per gram on 18 September, though jeweller demand remained steady ahead of the festive season.
• A resolution to the U.S.-China trade war bolstered equities, which capped gold gains as the metal slid to Rs.3,794 per gram on 22 September.

September 2019- Week 4 (23-30):

• Weak overseas offtake impacted gold price in India, with the metal trading at Rs.3,791 per gram on 23 September on a falling rupee and lacklustre jeweller demand.
• Gold price in India fell to Rs.3,777 per gram on 26 September as investors booked profits amidst a steady recovery in the dollar rate, as bullion lost favour.
• There was a marginal recovery over the weekend as retail sales increased, resulting in gold price ending the month at Rs.3,799 per gram to record a 1.9% decline in price.

Trend of Gold Rate in India for August 2019 (rates per gram of 24 karat gold)

August 2019- Week 1 (1-11):

• Gold rate in India were on a steady rise after opening the month at Rs.3,481 per gram as renewed economic uncertainty increased its safe-haven appeal.
• Gold Prices jumped to Rs.3,563 per gram on 5 August as the U.S. indicated a rise in tariffs on Chinese goods led to markets sinking and the dollar rate falling.
• The gold price in India climbed to Rs.3,750 per gram on 8 August as central banks slashed interest rates, ending the week higher at Rs.3,761 per gram on 11 August.

August 2019- Week 2 (12-18):

• Gold price in India opened at Rs.3,761 per gram before surging to Rs.3,793 per gram on 13 August as fears over renewed trade tensions.
• A brief dip in gold rate to Rs.3,755 per gram on 14 August after the U.S.’ trade concessions to China bolstered equities, but recession fears boosted bullion demand as gold surged to Rs.3,799 per gram on 15 August.
• Equities rebounded after hints of a stimulus from major central banks bolstered currencies, with gold price falling to Rs.3,787 per gram on 18 August.

August 2019- Week 3 (19-25):

• Gold rate in India opened lower at Rs.3,766 per gram on 19 August as a recovery in equity markets resulted in a dip in bullion demand.
• Gold price in India climbed to Rs.3,781 per gram on 21 August as renewed fears over recession and geopolitical crises rattled currency markets, increasing demand for safe-haven assets.
• The Fed meeting dampened some bullion demand before the metal rallied and ended the week at Rs.3,864 per gram on 25 August.

August 2019- Week 4 (26-31):

• Gold price in India continued to climb on steady local and overseas cues, opening the week higher at Rs.3,904 per gram before slipping to Rs.3,875 per gram on 27 August on profit booking.
• The possibility of Sino-U.S. talks bolstered equities and raised the dollar, though monetary stimulus plans and slowing growth saw prices soar to Rs.3,913 per gram on 29 August.
• Renewed indications of a resolution to the trade dispute saw bullion demand fall as gold price in India ended the month at Rs.3,876 per gram.

Gold Rate in the Most Popular Indian Cities

Why gold price is increasing in India?

Gold rates in the country change on a regular basis, with a number of factors impacting rates. A close look at recent trends could highlight the reason for such changes. Some of the most common factors impacting gold rates in India are mentioned below.

• Demand and supply – Gold rates increase when the demand exceeds supply. Gold, being a natural resource is available in limited quantities, and each time the supply reduces there is a spurt in gold rates.

• International relations – International trends have a deep impact on gold rates in India, primarily due to the fact that India depends on imports to meet local demand. Any changes in international relations could translate into a change in local gold rates.

• US dollar – The US dollar plays a key role in determining international gold rates. A strong dollar results in poor gold performance and vice versa, resulting in costlier gold each time the dollar underperforms.

• Market conditions – Gold is inversely proportional to market performance, with prices going up each time there is pressure on markets.

• Government taxes and duties – The government imposes taxes and duties on a number of commodities, including gold. Any increase in these taxes automatically pushes gold rates, pinching the pocket of buyers.

There has been a recent increase in gold rates due to improved performance on the international front. The US Federal Policy rate change had a huge impact on prices, helping them pick up after a poor performance last year. One could see a further hike in rates in the coming weeks, as the US Central Bank is set to change its rates, which are likely to have a direct impact on gold.

What are the different purity levels in gold?

Gold is often purchased by weight and purity, with the purity measured in a unit called Karat. Gold is available in different purities, with the popular ones being 24 karat, 22 karat and 18 karat. While 24 karat gold is used extensively as an investment, 22 and 18 karat gold can be used to make jewellery and ornaments.

22 karat gold is a mixture of gold and alloys, in the ratio 11:1. This essentially means that 1 gram of 22 karat gold has around 91.5% pure gold, with other metals making up the remaining portion. These impurities are added to pure gold to make it more malleable and ductile, thereby making it perfect for jewellery.

Similarly, 18 karat gold is a mixture of gold and metals in the ratio 3:1, i.e. 75% pure gold and 25% metals. This is typically cheaper than 22 and 24 karat gold on account of impurities. 18 karat gold typically has a dull colour, making it easily recognisable.

Other gold options include 14 karat gold (which has 58% gold), 10 karat gold (with 42% gold) and 6 karat gold (with 25% gold).

Which is the best investment option: Physical Gold, Gold ETFs, or Sovereign Gold Bonds?

In this section, we talk about all three investment options pertaining to gold and determine which of these is better.

Taxes on Gold in India

Gold as a commodity attracts taxation in India, and depending on what it is used for, the taxes levied on the resource differ.

Tax on Purchase of Gold

Most gold in India is imported, with the result that gold is subject to customs duty. The customs duty payable on gold stands at 10% of the total value of the gold. In addition, processing charges associated with purchase would be taxed at 5%.

The sale of gold in India brings it under the purview of GST (Goods and Services Tax) that was introduced in 2017. The GST on gold was set at 3%. As a result, the total tax payable on gold stands at 14% at present.

Income Tax on Gold

Any profit made from the sale of gold attracts income tax and both individuals as well as industry/jewellers are required to pay income tax in such a case.

The profit derived from the sale of gold falls under ‘Capital Gains Tax’ and details of tax liabilities and possible exemptions are mentioned below:

• Gold or gold jewellery bought and sold within a period of 3 years (36 months) is considered a short-term capital asset and would be taxed at the applicable rate (this is subject to change as announced by the government).
• Gold or gold jewellery bought and sold after a period of 3 years (36 months) is considered a long-term capital asset. Whether the gold was bought or given as a gift or received in the form of an inheritance, it would come under the long-term capital asset category. The taxes and other surcharges would be calculated accordingly.
• Gold received as a gift is exempt from tax if the value of the gold is less than Rs.50,000.

In the event of gold being sold and no profit being made from the sale, there is no tax since it is considered a ‘capital loss’ and can be listed at the time of filing income tax returns.

Uses of gold

Gold, as a metal, is used for a number of things apart from jewellery and bullion. In this section, we will list out the various industries that make use of the yellow metal.

• Glass making

Gold is used to a significant extent during a glass making process. Here are the three most popular uses.

• Of all the ways the metal is used, the most basic one is as a pigment. Gold is used in the annealing process to arrive at a rich ruby gloss. Annealing, to begin with, is a process involved in glass manufacturing, wherein it is heated to its ductile best and allowed to cool down slowly so as to harden it.
• Gold is also used in specialty glass making which are often used in climate-controlled buildings. A tiny amount of gold is added to a glass surface to help refract solar radiation away from a building, which in turn keeps the a building cool.
• It is used in the making of visors for astronaut helmets. Ideally, a thin film of gold is used to line the layer of helmets to keep intense solar radiation, which would otherwise harm the astronaut’s eyes.

• Electronics

Gold is used vastly in the electronics industry, thanks to its highly conductive properties. For starters, gold is used in every sophisticated electronic device, right from GPS units, cell phones, calculators, digital assistant units, and most of all television sets. The one downside to this, however, is the sheer wastage of the metal. This is because cell phones and consumer electronic products are manufactured in the millions and have a short shelf life. And due to the fact that there’s no proper recycling process in place, a considerable amount of gold is lost when the electronic products are dumped.

• Aerospace:

Aerospace vehicles are nothing like earth vehicles, and the most important distinction is that they cannot be serviced only it takes off from earth. This is why they need to be built with highly dependable materials. Here in comes gold. Thanks to its conductivity and connecting properties, the metal is used in circuitry. Besides this, most parts of a space vehicle is fitted with a gold-coated polyester film which helps keep infrared radiation out and keep the temperature inside the vehicle stable.

• Others

Apart from the uses mentioned above, gold is used in a variety of other domains, including but not limited to dentistry, awards, symbols, and statues.

FAQs About Gold

Gold is one precious metal which has managed to retain its shine over the years, creating a niche space for itself in the investment world. Being a natural resource, there is a constant mismatch between the demand and supply, making gold an extremely precious commodity, with people viewing it as a safe and reliable investment option. India is one of the largest consumers of gold in the world, with estimates indicating that the residents own over 20,000 tonnes of this precious metal. While our love for gold is witnessed across the length and breadth of India, there is more to gold than just its utility, aspects which most of us are unaware about.

Gold as a commodity isn’t the easiest one to comprehend, with certain nuances having a great impact on it. Taking time to learn about them can help you get the best out of your investment, making it truly shine.

When is the right time to buy gold in India?

Although, there isn’t such a thing called the right time to buy gold, there are periods where demand is usually low and so will be the rates. So, in order to make the most of your investment, try to invest in the metal during the off-season i.e., when no major festivals aren’t around. This is because major festivals bring about an influx of buyers which will push gold prices higher.

What are the different avenues to invest in gold ?

Gone are the days when the only mode to invest in gold was to purchase it physically. Today, there are multiple avenues through which one can buy gold, with the popular ones mentioned below.

Gold mutual funds – Gold mutual funds are offered by a number of organisations, offering ease of investment through SIPs.

Gold ETFs – Gold Exchange Traded Funds permit trading of gold in units (by weight), with the investment viewed as debt mutual funds by tax authorities.

Gold futures – Gold futures are popular among certain investors, with the MCX and NCDEX offering avenues to invest in gold through derivatives.

E-gold – E-gold is a new option to invest in gold, offering ease and flexibility to investors.

Physical gold - Physical purchase of gold in the form of coins, jewellery, bars, etc. continues to account for a major portion of investment, with the new modes expected to gain more acceptance with time.

How many grams of gold in one tola?

Gold is purchased by weight, with every gram costing a decent amount of money. India is home to over 1.2 billion people, each one unique and having different modes of communication, including units of weight. While there are internationally accepted conventions when it comes to weight, certain regions have their own traditional units, with the Tola being one such popular unit.

1 Tola roughly translates to around 11.6 grams, with 1 kg of gold corresponding to 85.7 Tolas (approximately). This unit is still used in a number of towns and cities, with 1 Tola gold costing Rs 30,887 (as of April 25, 2016).

How to buy gold?

Buying gold isn’t very hard, given the multiple avenues available, but there are a few key points one should keep in mind before spending that hard earned money.

• Research – Gold rates change on a daily basis and it is imperative that one does research before buying gold. Observing trends and staying abreast of changes can ensure that you get a good deal on the investment, reducing the chances of being cheated.

• Gold selection – Gold can be purchased in different forms, with each one offering unique advantages. Choose an investment avenue which matches your needs.

• Certification – There are numerous occasions wherein people have been duped into buying gold of inferior purity, purely on account of blind faith. Ensure that the jeweller or source you intend to buy from has a good record, and insist on purity certification.

• Online purchase – Individuals who wish to buy gold online need to ensure that the source they choose is trusted, for a number of sellers on the internet can be fake.

How to sell gold ?

Gold is one investment which is always in demand, making it a liquid asset. Selling gold isn’t hard, with most jewellers and pawn shops willing to buy gold at market rates. Individuals who wish to sell gold need to ensure that they know current gold rates, for buyers may choose to haggle or negotiate, and failing to know present prices could result in selling gold at lower rates.

Also, gold coins and bars attract better rates than jewellery and are easier to sell. Individuals who do not wish to sell gold can choose to avail gold loans against it, with a number of banks and private lenders offering loans keeping gold as collateral.

What is 24 karat gold?

24 karat gold is the purest form of gold which can be purchased, having no impurities. This purity makes it ideal for investments, with most investors choosing to purchase 24 karat gold. The only drawback of this purity is that 24 karat gold cannot be used to make jewellery or ornaments, limiting their use to gold coins or bars.

How to buy gold coins in India?

Gold coins are extremely popular in the country and are available in different weights, ensuring that investors can buy gold which suits their budget. Gold coins can be purchased from banks, jewellers, post offices or online stores, with the popular ones being in the 1g to 10g weight bracket. A number of jewellers and online stores sell coins with the imprint of Gods or Goddesses, charging higher for such coins.

One can walk into any bank or jewellery store and choose to buy a coin, albeit a PAN might be required if the cost exceeds Rs 50,000. Most jewellers and banks offer a purity certificate with the coin, which could hike the cost of a coin. Gold coins can be purchased by purity as well, with the popular options being 22 and 24 karat.

One should remember to keep certain basic points like market rate, dealer reputation, certification, etc. before buying gold coins.

How to buy gold bars?

Gold bars are typically reserved for serious investors, people who have sufficient funds to invest in them. These bars can be purchased in different weights, typically ranging between 500g and 1kg. Banks and big jewellers sell gold bars, although one can also purchase them online. One must remember to check the purity and prevailing market rates before investing in gold bars. A Pan is required if one is purchasing gold bars worth over Rs 50,000.

How US treasury bond yields affect gold prices in India today?

Typically, US treasury yields and gold prices have an inversely proportional relationship, which is in turn connected to the Federal Reserve interest rate changes. For instance, if the Fed Reserve increases the interest rates, yields on savings accounts and bonds increase. This in turn makes gold a much weaker proposition for investors and causes gold rates to plummet. According to historic data from the last ten years, gold rates have thrived massively when 10-year yields have been at their lowest points. Note that, only the yields affect gold rates more when compared to 2-year and 5-year yields.

Is it worth investing in gold schemes offered by jewellers?

For a vast majority of Indians, gold is a symbol of their stature in the societal hierarchy. Considering how expensive gold is getting each year and how most of the population can’t afford it, gold schemes are a boon in disguise. For starters, a prospective investors needs to pay a small amount on a monthly basis and you get the money’s worth in gold at the end of the tenure. Further, jewellers tend to knock off making charges altogether at times to make the deal more enticing.

Who discovered gold?

Gold has been in use for millennia and the actual details of the person who discovered it is unknown. However, the earliest use of gold can be seen in the early civilisations ranging from the Greece, Egypt, and Rome among others, where gold featured heavily both in trade and commerce.