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 October 2019 (rates per gram of 24 karat gold)

October 2019- Week 1 (1-6):

• After opening at Rs.3,722 per gram, gold rates in India surged during the week, bolstered by festive demand and a rise in overseas demand which raised prices.
• The yellow metal 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.
• 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 precious metal rose to be priced 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 the metal 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.

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 prices in India opened the week at Rs.3,876 per gram and rose on a weak rupee and strong overseas cues.
• Prices 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 prices 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 metal 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 metal slid to Rs.3,763 per gram on 15 September.

September 2019- Week 3 (16-22):

• Gold prices 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 metal 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 prices in India, with the metal trading at Rs.3,791 per gram on 23 September on a falling rupee and lacklustre jeweller demand.
• Prices 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 the precious metal 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 rates 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 precious metal 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 prices 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 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 the yellow metal falling to Rs.3,787 per gram on 18 August.

August 2019- Week 3 (19-25):

• Gold rates 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.
• Prices 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 prices 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 the precious metal ended the month at Rs.3,876 per gram.

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

July 2019- Week 1 (1-7):

• Gold price in India saw a steady rise despite overseas demand falling, with the precious metal priced at Rs.3,373 per gram on 1 July before rising to Rs.3,443 per gram on 3 July.
• Equities gained as investors put off bullion purchases ahead of the U.S. unemployment data release, as prices dropped to Rs.3,423 per gram on 5 July.
• Despite a drop in overseas demand due to positive equity demand, gold rate in India to Rs.3,445 per gram as the week ended on 7 July.

July 2019- Week 2 (8-14):

• Some fluctuations were observed but gold price in India were on the rise during the week after opening at Rs.3,452 per gram on 8 July.
• Gold rate in India surged to Rs.3,493 per gram on 11 July as indications of an interest rate cut by the Fed bolstered bullion demand, through prices dropped to Rs.3,463 per gram on 12 July as markets recovered and retail demand fell marginally.
• An increase in trade tensions between the U.S. and China boosted demand for the precious metal as prices rose to Rs.3,482 per gram when the week ended on 14 July.

July 2019- Week 3 (15-21):

• Gold price in India saw a steady rise as an increase in bullion offtake overseas boosted local demand, with the metal trading at Rs.3,476 per gram on 16 July.
• Strong U.S. retail data dampened demand for the yellow metal briefly but steady local order volumes kept prices from falling too steeply, with gold priced at Rs.3,459 per gram on 18 July.
• Gold rate in India jumped to Rss.3,537 per gram on 19 July on possible interest rate cuts, but an uptake in the dollar saw the precious metal trade at Rs.3,512 per gram when the week ended on 21 July.

July 2019- Week 4 (22-28):

• There was a marginal drop in gold prices in India after the metal opened at Rs.3,518 per gram on 22 July as investors reduced offtake.
• Prices dropped to Rs.3,498 per gram on 23 July on profit-booking by investors as the U.S. dollar rose on positive U.S. debt discussions.
• Renewed uncertainty in the Middle East boosted rates to Rs.3,503 per gram on 25 July but weak demand ahead of the Fed Reserve meeting saw the precious metal end the week at Rs.3,498 per gram on 28 July.

July 2019- Week 5 (29-31):

• The last week saw gold prices in India continue to scale new heights, opening at Rs.3,498 per gram.
• Prices climbed to Rs.3,502 per gram on 30 July despite a drop in overseas demand, as rising uncertainty rattled Indian investors.
• Ahead of the U.S. Fed decision on interest rates, bullion stabilised overseas and continued to rise locally, trading at Rs.3,505 per gram to record a moderate 3.91% rise in price during the month.

Gold Rate in the Most Popular Indian Cities

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

June 2019- Week 1 (1-9):

• Gold rate in India surged on rising overseas safe-haven demand and strong offtake from local jewellers after opening the month at Rs.3,233 per gram.
• Fears of additional U.S. trade tariffs against Mexico sent markets into a tailspin as demand for bullion grew steadily, with the precious metal priced at Rs.3,246 per gram on 4 June.
• Despite a rise in the U.S. dollar rate, gold price in India continued to climb, trading at Rs.3,271 per gram on 7 June before surging to Rs.2,299 per gram on 9 June.

June 2019- Week 2 (10 - 16):

• The gold rate in India at the start of week 2 stood the same as it did at the end of week 1. The price of gold stood at Rs.3,371 per gram on the 10th.
• A subdued dollar rate caused gold price to soar, and on 13 June, gold price in India rose to Rs.3,339 per gram.
• Despite a rise in the U.S. dollar rate, gold price in India continued to climb, trading at Rs.3,371 per gram on 15 June before surging to Rs.3,376 per gram on 16 June.

June 2019- Week 3 (17-23):

• Gold rate in India opened unchanged at Rs.3,305 per gram on 17 June as robust U.S. retail data boosted the dollar, with the metal dropping to Rs.3,301 per gram on 19 June.
• Investors awaited minutes of the Federal Reserve meeting, with news of possible interest rate cuts sending bullion soaring to Rs.3,372 per gram on 20 June as equities and the U.S. dollar slumped.
• Prices continued their steady rise as fears of U.S.-Iran tensions increased the metal’s safe-haven appeal, with gold price in India ending the week at Rs.3,422 per gram.

June 2019- Week 4 (24-30):

• Demand for gold was steady as the week began with gold rate in India at Rs.3,422 per gram on 23 June before surging to Rs.3,473 per gram on 24 June as Iran-U.S. tensions increased the metal’s safe-haven appeal.
• Gold price in India dropped as market stabilised and indications of a possible Sino-U.S. trade resolution bolstered equities.
• Prices continued to fall as retail demand declined due to rising bullion costs, with the metal ending the month at Rs.3,415 per gram and recording a 5.62% rise in price.

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

May 2019- Week 1 (1-5):

• In contrast to trends seen the previous month, gold price in India fell as weak local offtake combined with a slight rise in the U.S. dollar rate dented demand as the metal opened the month at Rs.3,190 per gram.
• The Federal Reserve’s decision to keep interest rates unchanged boosted equities as bullion demand dropped with local rate dropping to Rs.3,150 per gram on 3 May.
• A slide in equity demand due to struggling Eurozone markets bolstered bullion marginally before prices once again fell to Rs.3,163 per gram on 5 May.

May 2019- Week 2 (6-12):

• There was a recovery in gold prices in India as positive overseas cues and rising local demand boosted bullion offtake after the metal opened at a lacklustre Rs.3,171 per gram on 6 May.
• Gold rate in India quickly climbed to Rs.3,184 per gram on 8 May as threats of more U.S. tariffs on Chinese goods rattled markets, with the precious metal rising to Rs.3,200 per gram on 10 May.
• Despite the release of positive economic data and no interest rate cuts, the implementation of trade tariffs resulted in a surge in bullion demand as the yellow metal ended the week at Rs.3,205 per gram.

May 2019- Week 3 (13-19):

• There was a recovery in gold price in India as positive overseas cues and rising local demand boosted bullion offtake after the metal opened at a lacklustre Rs.3,170 per gram on 13 May.
• Gold rate in India quickly climbed to Rs.3,184 per gram on 14 May as threats of more U.S. tariffs on Chinese goods rattled markets, with the precious metal rising to Rs.3,200 per gram on 15 May.
• Despite the release of positive economic data and no interest rate cuts, the implementation of trade tariffs resulted in a surge in bullion demand as the yellow metal ended the week at Rs.3,205 per gram.

May 2019- Week 4 (20-26):

• Conflicting cues and weak local offtake resulted in gold rate in India making minimal gains after opening at Rs.3,170 per gram on 20 May.
• Renewed market turbulence due to the ongoing tensions between Iran and the U.S. dented equities but bullion saw a drop in value, trading at Rs.3,165 per gram on 22 May.
• A steady U.S. dollar and poor industrial demand kept prices low for most of the week before a steep drop in the U.S. currency saw gold price in India surge to Rs.3,183 per gram on 26 May.

May 2019- Week 5 (27-31):

• A steady increase in bullion demand due to renewed global uncertainty saw gold price in India open at Rs.2,186 per gram on 27 May.
• The ongoing U.S.-China trade war conflict bolstered global demand for gold but a recovering U.S. dollar rate saw local demand fall as the yellow metal dropped to Rs.3,179 per gram on 30 May.
• A drop in U.S. Treasury yields ignited fears of a global recession which raised bullion demand as the precious metal climbed to Rs.3,215 per gram when the month ended on 31 May.

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

April 2019- Week 1 (1-7):

• Gold rate in India were sluggish as weak overseas trends impacted local demand after the precious metal opened the month at Rs.3,189 per gram.
• Prices slipped to Rs.3,161 per gram on 3 April as robust U.S. jobs data reduced investor reliance on safe-haven bullion in favour of equities.
• Poor U.S. manufacturing data resulted in the U.S. dollar rate falling as interest in the metal rose, with the yellow metal’s rate rising to Rs.3,172 per gram on 5 April and closing the week at Rs.3,185 per gram.

April 2019- Week 2 (8-14):

• There was a marginal drop in gold prices in India as fluctuating cues contrasted with a slight rise in local demand with the metal opening at Rs.3,198 per gram on 8 April.
• Gold price in India surged to Rs.3,208 per gram on 9 April as renewed fears over a global economic slowdown saw the U.S. dollar drop, though gold’s fortunes were reversed as the metal fell to Rs.3,178 per gram on 12 April.
• Positive export figures from China and a possible resolution to the Sino-U.S. trade crisis boosted equities but local jeweller demand raised the metal’s value to Rs.3,183 per gram on 14 April.

April 2019- Week 3 (15-21):

• Gold rate in India dropped when trading for the week began as robust economic data from China eased global slowdown concerns, with the metal priced at Rs.3,177 per gram on 15 April.
• Prices were on the decline as local jewellers reduced offtake following a rise in the U.S. dollar rate, with the yellow metal trading at Rs.3,171 per gram on 17 April before dropping to Rs.3,162 per gram on 19 April.
• Weak economic data from Europe and a dovish outlook from Eurozone central banks boosted bullion’s profile among investors as the metal inched higher to close the week at Rs.3,166 per gram on 21 April.

April 2019- Week 4 (22-28):

• In a reversal of fortunes, gold price in India received a boost as growing market uncertainty resulted in higher bullion offtake after the metal opened the week at Rs.3,180 per gram on 22 April.
• Positive data from the U.S. bolstered the U.S. dollar and dampened demand for bullion as the yellow metal dropped to Rs.3,165 per gram on 24 April but prices rose marginally to Rs.3,179 per gram on 25 April as local jewellers increased orders.
• Looming fears over global economic health and weak U.S. GDP data saw investors turn to bullion as a safe-haven asset as the metal’s value soared to Rs.3,208 per gram when the week ended on 28 April.

Trend of Gold Rate in india for March 2019 (rates per gram of 24 karat gold)

March 2019- Week 1 (1-10):

• Gold price in India fell steadily as a recovering U.S. dollar and rising equities reduced appetite for safe-haven bullion despite opening at Rs.3,305 per gram on 1 March.
• Hope that a Sino-U.S. trade deal could materialise boosted risk sentiment among overseas investors and resulted in a drop in bullion interest as the gold rate fell to Rs.3,249 per gram on 5 March.
• Rising U.S. Treasury yields boosted the dollar as gold’s appeal fell overseas and domestically, trading at Rs.3,210 per gram on 7 march before recovering marginally to close at Rs.3,247 per gram on 10 March.

March 2019- Week 2 (11-17):

• Demand for gold was on the decline as strong U.S. jobs data boosted the U.S. dollar rate and led to a drop in price after the yellow metal opened at Rs.3,233 per gram on 11 March.
• Gold rate in India fell to Rs.3,213 per gram on 13 March as local demand was muted due to the rise in the dollar rate despite overseas bullion interest rising, with gold price in India dropping to Rs.3,207 per gram on 15 March.
• The upcoming Brexit vote uncertainty boosted interest in safe-haven bullion as gold rose marginally to Rs.3,212 per gram on 17 March.

March 2019- Week 3 (18-24):

• While gold prices in India improved on last week’s performance, weak overseas cues and a steady U.S. dollar capped gains after the metal opened the week at Rs.3,190 per gram on 18 March.
• Prices jumped to Rs.3,209 per gram on 20 March after the turmoil over a possible no-deal Brexit saw equities plunge and investors turned to safe-haven bullion, with prices continuing to rise to Rs.3,215 per gram on 21 March.
• Gold dropped marginally to Rs.3,191 per gram on 22 March before closing higher at Rs.3,236 per gram on 24 March over the Brexit fallout and fears of a U.S. recession.

March 2019- Week 4 (25-31):

• Gold opened the week at Rs.3,229 per gram on 25 March but prices dropped on conflicting cues, trading at Rs.3,217 per gram on 27 March.
• Despite the Fed Reserve adopting a dovish position, the U.S. dollar remained strong as U.S. bond yields rose and investors’ risk appetite for equities rose resulting in reduced interest in gold as the yellow metal traded at Rs.3,210 per gram on 28 March.
• Prices dropped to a monthly low of Rs.3,169 per gram on 29 March as positive Chinese economic data boosted currencies and shored up equities.
• Gold rates in India recovered as the month ended, with the precious metal rising to Rs.3,200 per gram on 31 March as the U.S. dollar eased marginally.

Gold Related Topics

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

February 2019- Week 1 (1-10):

• Demand for gold was on the decline as equity markets regularised and the dollar strengthened, with the gold priced at Rs.3,354 per gram on 1 February.
• Gold price in India fell to Rs.3,316 per gram on 7 February as another U.S. government shutdown appeared averted, reducing investor interest in bullion.
• Local retail demand also took a hit but sustained orders from jewellers boosted gold rate in India marginally towards the end of the week, with the metal trading at Rs.3,332 per gram on 10 February.

February 2019- Week 2 (11-17):

• Weakening demand from overseas and a rising dollar resulted in a decline in gold rate in India, with the metal trading at Rs.3,319 per gram on 11 February.
• Local retail demand waned on weak overseas cues as investors stayed away from bullion purchases ahead of the Sino-U.S. trade talks, as gold fell to Rs.3,292 per gram on 13 February.
• Prices recovered marginally as jeweller demand remained steady but industrial demand was sluggish as the dollar continued to strengthen.
• The end of the week saw gold price climb as renewed Brexit uncertainty impacted equities, boosting demand for the metal which traded at Rs.3,350 per gram on 17 February.

February 2019- Week 3 (18-24):

• Gold rate in India opened the week at Rs.3,356 per gram on 18 February as retail demand slowed down but strong overseas cues kept prices high.
• The precious metal held steady ahead of the Fed meeting minutes as investors were wary of further rate hikes, but favourable indicators saw gold price jump to Rs.3,393 per gram on 20 February.
• A recovering dollar and uncertainty over the U.S.-China trade talks saw investors switch back to equities as gold price in India dropped to Rs.3,360 per gram on 24 February.

February 2019- Week 4 (25-28):

• In a surprising trend, gold rate in India dropped in the last week as a strengthening dollar and gradual decline in investor interest negatively impacted bullion demand.
• Gold traded at Rs.3,355 per gram on 25 February but demand fell as the dollar rebounded on renewed fears over the state of Sino-U.S. trade relations.
• Gold price dropped to Rs.3,333 per gram as local demand also reflected weak overseas cues, with the metal recording an overall fall of 0.62% over the course of the month.

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

January 2019 - Week 1 (1 - 6):

• Demand for gold in India was on the rise as festive fervour and volatile stocks increased reliance on safe-haven bullion.
• Gold price opened the year at Rs.3,172 per gram and rose to Rs.3,192 per gram on 3 January as the U.S. government shutdown continued.
• Local demand was steady but overseas demand volatility lowered prices as the week ended, resulting in gold trading at Rs.3,175 per gram on 6 January.

January 2019- Week 2 (7 – 13):

• Gold rate in India continued to climb this week in spite of dips in local demand and fluctuating markets.
• The precious metal traded at Rs.3,172 per gram when the week opened on 7 January but rose quickly as overseas and local demand was steady.
• Gold climbed to Rs.3,229 per gram on 10 January before settling at Rs.3,222 per gram when the week ended on 13 January due to minor fluctuations in local demand due to a recovering dollar.

January 2019- Week 3 (14 - 20):

• Demand for gold was on the rise this week, though fluctuations due to conflicting overseas cues continued to overshadow gold rate in India.
• Gold was priced at Rs.3,230 per gram on 14 January but rose as local jeweller demand increased due to the ongoing wedding season.
• With the U.S. government shutdown continuing and markets reeling from unfavourable Brexit news, investors turned to gold and boosted prices to Rs.3,248 per gram on 16 January.
• Gold price in India briefly rose to a high of Rs.3,263 per gram on 17 January before sluggish Asian demand capped gains, resulting in the metal trading at Rs.3,246 per gram on 20 January.

January 2019- Week 4 (21-27):

• Fluctuating overseas cues saw gold rate in India dip considerably mid-week before recovering on a surge in local retail demand.
• The precious metal opened unchanged at Rs.3,246 per gram on 21 January and remained constant for a few days on static overseas demand.
• Weak equity markets due to the U.S. government shutdown did not affect prices, which dipped to Rs.3,236 per gram on 22 January before climbing to Rs.3,277 per gram on 27 January.

January 2019- Week 5 (28-31):

• As markets continued to fluctuate due to the ongoing political crisis in Venezuela there was a rise in demand for gold, with the metal priced at Rs.3,285 per gram on 28 January.
• Prices rose steadily as investors anticipated a slowdown in interest rate hikes by the Fed, which boosted gold sales and led to a decline in the dollar rate.
• Gold rates in India rose to Rs.3,326 per gram on 30 January on surging overseas and local demand before settling at Rs.3,321 per gram on 31 January to record a rise of Rs.41 during the week.

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.

Trend of Gold Rate in India for December 2018 (rates per gram of 24 karat gold)

December 2018 - Week 1 (1 - 9):

• Gold prices in India surged on strong investor sentiment and increased offtake from local jewellers due to the wedding season.
• The precious metal opened trading at Rs.3,045 per gram on 1 December , with prices steadily rising due to a weak dollar and market fluctuations.
• Prices surged from Rs.3,108 per gram on 7 December to close the week at Rs.3,161 per gram on 9 December.

December 2018 - Week 2 (10 - 16):

• Gold rates fluctuated on conflicting cues, opening at Rs.3,163 per gram on 10 December on steady local and overseas demand.
• Prices rose to Rs.3,912 per gram on 11 December as investors looked to gold due to unstable equity markets, but fell to Rs.3,175 per gram on 13 December as the dollar strengthened.
• The end of the week saw prices fall further as overseas demand fell, resulting in gold rates in India closing the week at Rs.3,161 per gram on weak demand.

December 2018 - Week 3 (17 - 23):

• Gold was priced at Rs.3,147 per gram when the third week of December opened for trading before going up to Rs.3,154 per gram ahead of expectations that Fed will be cautious with interest rate hikes.
• Demand in the local market plummeted and prices fell considerably on the 19th for gold to trade at Rs.3,111 per gram.
• Gold recovered to end the week at Rs.3,128 per gram.

December 2018 - Week 4 (24 - 31):

• The last week commenced with gold rate in India holding at Rs.3,143 per gram on the 24th with investors banking on the bullion amid concerns over a partial US government, US-Chinese trade dispute and declining global economic growth.
• With market participants gravitating to safe-haven assets amid the highly volatile equities market and economic concerns, gold prices surged to Rs.3,170 per gram on the 28th.
• The month came to an end with gold priced at Rs.3,185 per gram on the 31st, registerng a 3.94% increase in gold rates during the month.

Trend of Gold Rate in India for November 2018 (rates per gram of 24 karat gold)

November 2018 - Week 1 (1 - 10):

• The month began with gold rate in India holding at Rs.3,184 per gram with steady global demand amid positive market trends.
• Gold prices dropped by Re.1 to Rs.3,183 per gram the next day before rebounding to Rs.3,191 per gram on the 3rd after the US dollar weakened ahead of the US nonfarm payroll data.
• The week came to an end with gold price in India closing at Rs.3,191 per gram on the 4th with steady investor demand amid strong global cues.

November 2018 - Week 2 (5 - 11):

The week began with gold rate in India holding at Rs.3,179 per gram on the 5th with subdued domestic demand amid the weak trend overseas.

With local demand picking up amid the festive season, gold price in India surged to Rs.3,187 per gram the next day.

However, with the yellow metal losing its sheen ahead of the US Federal Reserve policy statement, demand for metal dropped considerably and gold was recorded trading at Rs.3,134 per gram on the 11th.

November 2018 - Week 3 (12 - 18):

• Demand for gold was on the decline as the week began, with the metal trading at Rs.3,141 per gram on 12 November on subdued global demand.
• Brexit negotiations and the political uncertainty in Europe did not boost the metal’s prices, which plunged to Rs.3,096 per gram on 14 November as markets rallied.
• As Britain’s European Union exit plan was released to negative reviews, markets plunged and gold rose briefly to Rs.3,124 per gram on 17 November.
• Prices remained constant, with gold rate in India closing at Rs.3,124 per gram on 18 November, a decline of Rs.17.

November 2018 - Week 4 (19 - 25)

• Gold prices in India were on the decline as overseas and local demand dropped on a strengthening U.S. dollar.
• The yellow metal opened the week at Rs.3,120 per gram on 19 November, with prices continuing to dip throughout the week on poor retail demand.
• Reduced industrial offtake also affected gold rates, as investors avoided bullion ahead of the Federal Reserve’s monetary policy meeting.
• The week ended with gold priced at Rs.3,081 per gram on 25 November, recording a fall of Rs.39 during the week.

November 2018 - Week 5 (26 - 30):

• A rising rupee and falling retail sales affected gold prices in India this week, with the precious metal trading at Rs.3,071 per gram on 26 November.
• Overseas demand fluctuated as investors stayed away from bullion ahead of the G20 summit.
• Prices plunged to Rs.3,058 per gram on 28 November following the Federal Reserve’s remarks on financial stability.
• The dip in price continued for the rest of the week, as gold traded at Rs.3,045 per gram on 30 November.

Trend of Gold Rate in India for October 2018 (rates per gram of 24 karat gold)

October 2018 - Week 1 (1 - 7):

• Expectations of a rise in the dollar rate saw gold price India open lower at Rs.3,071 per gram when trading began, but prices rose over the rest of the week.
• The precious metal saw a sharp rise in price, trading at Rs.3,085 per gram on 2 October as investors increased their risk appetite.
• Local demand was also on the rise, as jewellers increased orders ahead of the festive season, sending gold prices to Rs.3,129 per gram on 3 October.
• Prices fell briefly to Rs.3,120 per gram on 5 october as a rally by the dollar led to higher demand for currency.
• Gold rate in India rose as the week ended, trading at Rs.3,158 per gram on 7 October to record an increase of Rs.87 during the week.

October 2018 - Week 2 (8 - 14):

• On 8 October, the value of the dollar rose causing the price of gold in India to decline for the following few days.
• Global stocks dip in value along with the dollar on 11 October causing the gold price in India to increase.
• On 14 October, the gold price in India increased to Rs.3,245 per gram, recording an inclining trend for week 2.

October 2018 - Week 3 (15 - 21):

• Demand for gold was on the increase in the third week of October as falling currencies made bullion more attractive.
• The precious metal opened the week at Rs.3,185 per gram on 15 October, with prices rising by Rs.8 per gram from the previous week on rising demand.
• Retail orders increased due to the festive season, with gold jumping to Rs.3,199 per gram on 16 October.
• Gold price in India fell sharply to Rs.3,173 per gram on 17 October as stock markets recovered and industrial demand fell.
• Gold rate in India continued to fluctuate for the remainder of the week, closing at Rs.3,189 per gram on 21 October to record a marginal rise of Rs.4 over the week.

October 2018 - Week 4 (22 - 28):

• Gold prices saw some fluctuation during the week as conflicting cues pressured the metal.
• The week began with gold priced at Rs.3,182 per gram on 22 October but prices jumped to Rs.3,190 per gram on 23 October on strong local demand.
• In spite of a depreciating US dollar making gold more expensive, retail demand propelled prices to Rs.3,200 per gram on 25 October.
• The sharp slide in technology stocks led to a global market crash and higher interest in gold, as the metal traded at Rs.3,205 per gram on 27 October.
• Prices fell as the week ended, as gold rates in India closed at Rs.3,197 per gram on 28 October to record a rise in price of Rs.15 during the week.

October 2018 - Week 5 (29-31):

• The last week of October saw a decline in gold prices as a rising dollar and lower overseas orders resulted in a drop in demand.
• Gold opened the week at Rs.3,194 per gram on 29 October, falling slightly as retail demand dropped due to the rising dollar.
• Fluctuating crude prices and the falling rupee made local gold more expensive, which was reflected in the fall in price to Rs.3,191 per gram on 30 October.
• The end of the month saw gold prices in India continue to slide, as the metal closed the month at Rs.3,188 per gram.

Trend of Gold Rate in India for September 2018 (rates per gram of 24 karat gold)

September 2018 - Week 1 (1 - 8):

• The start of September saw gold rates in India recover some value on increased retail trade and positive trends.
• Gold was priced at Rs.3,029 per gram when trading began before dropping to Rs.3,019 per gram on 3 September as the dollar rate recovered, reducing demand for gold.
• A falling rupee affected gains, though gold bounced back to trade at Rs.3,033 per gram on 4 September over fears of a possible trade war.
• Gold price in India climbed to Rs.3,053 per gram on 6 September as overseas demand for gold helped push prices higher, with local jewellers also increasing orders.
• Industrial demand steadied prices towards the end of the week, as the metal traded at Rs.3,065 per gram on consistent demand and favourable trends.

September 2018 - Week 2 (9 - 14):

• Demand for gold in India was sluggish in the second week, as the metal traded at Rs.3,065 per gram on 9 September.
• The continued trade tensions between the U.S. and China boosted the dollar as the yellow metal’s value fell sharply.
• Gold price in India rose to Rs.3,080 per gram on 12 September as gold recouped some of its losses after the dollar slid across currency markets.
• Anticipation of an interest rate hike reduced investor interest in gold, as local markets also fell, pushing gold price India dropped down to Rs.3,068 per gram on 13 September.
• The week ended with gold falling further to Rs.3,064 per gram on 14 September as market forces resulted in prices declining.

September 2018 - Week 3 (15 - 22):

• There was a rise in gold price in India in the third week as concerns over the dollar and the trade war led to higher reliance on bullion.
• The precious metal opened the week at Rs.3,066 per gram on 15 September as the possibility of new tariffs on Chinese goods hit markets badly.
• Prices were on a cautious rise as retail demand was on the increase ahead of the festive and wedding seasons.
• Gold reached Rs.3,069 per gram on 17 September before prices jumped to Rs.3,079 per gram on 18 September.
• The dollar weakened significantly in light of retaliatory tariffs on U.S. goods by China, as investors looked to bullion as a safe-haven asset.
• Gold rate in India jumped to Rs.3,091 per gram on 19 September as mounting pressure on the dollar led to a rally by gold.
• Prices dropped as the week ended, with the metal priced at Rs.3,077 per gram on 22 September to register a rise of Rs.11.

September 2018 - Week 4 (23 - 30):

• Gold price in India were on the decline in the last week of September after a turbulent week of trading.
• The precious metal opened trading at Rs.3,077 per gram on 23 September, with no change in price from the previous week due to stable demand.
• Prices rose to Rs.3,090 per gram on 25 September ahead of the Fed Reserve meeting, as demand from jewellers rose ahead of the festive season.
• Demand for gold fell sharply after the Federal Reserve raised interest rates, resulting in the metal trading at Rs.3,077 per gram on 27 September.
• Gold dropped to Rs.3,049 per gram on 28 September as the dollar rose on positive economic data and the rate hike, reducing interest in bullion.
• Gold rate in India recovered as the month ended, with gold priced at Rs.3,074 per gram on 30 September.

Trend of Gold Rate in India for August 2018 (rates per gram of 24 karat gold)

August 2018 - Week 1 (1 - 5):

• Demand for gold was on the decline in the first week of August, as local demand continued to be poor due to the high dollar rate.
• The gold rate in India was Rs.2,983 per gram on 1 August, as the upcoming Fed Reserve meeting led to reduced appetite for bullion.
• The dollar’s fall against the yen boosted interest in bullion, but local investors kept away, waiting for rates to fall further.
• Gold plunged to Rs.2,956 per gram on 3 August as positive assessments of the U.S. economy pushed the dollar and equity markets higher.
• Gold price in India recovered somewhat as the week ended, with gold priced at Rs.2,973 per gram on 5 August.

August 2018 - Week 2 (6 - 12):

• The demand for gold during the second week of August was on the rise due in spite of steady dollar rates.
• The gold price in India stood at Rs.2,967 per gram on 6 August, as the dollar weakened during this period.
• The dollar rose to a 13 month high on 10 August which impacted the gold rate in India.
• Gold price in India then rose to Rs.2,984 per gram on 12 August as dollar strengthens after European Banks’ were exposed to turkey.
• The week ended with Gold rates in India at Rs.2,984 per gram, and was an incline trend as the gold price rose marginally over the course of the week.

August 2018 - Week 3 (13 - 19):

• The gold price in India during the third week of August was on the decline as dollar rates hit a near 13-month high.
• On 13 August, the gold price in India stood at Rs.2,985 per gram. During the same period, the dollar value was on a rise.
• The gold price then stabilised for a few days after which it declined marginally towards the end of the week.
• At the end of Week 3, the gold rate in India declined in comparison to the former part of the week. The price of the metal on 19 August stood at Rs.2,952 per gram. This was during the same period when US - China trade talks were in place.
• Week 3 ended with the metal was priced at Rs.2,952 per gram, and showed a declining trend for the week ending 19 August.

August 2018 - Week 4 (20 - 26):

• The week began with gold rate in India holding at Rs.2,952 per gram on the 20th as investors gravitated towards the bullion after hitting its lowest level since January last week.
• With the US dollar losing ground after President Trump’s negative comments on the US Federal Reserve’s interest rate hike, demand for the metal surged.
• This led to gold price in India surging to Rs.2,962 per gram and Rs.2,974 per gram on the 21st and the 22nd respectively.
• Rates, however, dropped over the next couple of days as the dollar recovered on market expectations of rising US interest rates and gold in India was recorded trading at Rs.2,968 per gram on the 24th.
• The 25th saw gold price in India rebounding to Rs.3,004 per gram as the US greenback stabilised as markets awaited the US Federal Reserve Chairman’s speech on the pace of interest rates.
• The week concluded with gold rate in India closing at Rs.3,004 per gram with steady domestic demand from industries and jewellers amid the firm trend overseas.

August 2018 - Week 5 (27 - 31):

• Demand for gold in the last week of August saw an upward trend, as local demand from jewellers was on the rise.
• Gold was priced at Rs.2,999 per gram when trading opened on 27 August as interest in the asset rose following a dip in the dollar rate.
• Investors were wary of a reduction in interest rate hikes and increased interest in bullion, as gold price in India rose to Rs.3,012 per gram on 29 August.
• The increase in local demand from both jewellers as well as industry kept local price stable and on the rise in spite of demand vagaries.
• The price continued to rise as the week ended, with gold trading at Rs.3,039 per gram on 31 August to record a Rs.30 increase in price during the week.

Trend of Gold Rate in India for July 2018 (rates per gram of 24 karat gold)