Gold Rate in India

24 Carat Gold Rates

Months	Lowest Price 24 Carat Gold – Rs. per 10 grams	Highest Price 24 Carat Gold – Rs. per 10 grams
September 2018	29,080	30,240
August 2018	29,010	29,730
July 2018	29,340	30,130
June 2018	30,020	31,580
May 2018	31,410	31,960
April 2018	31,000	31,920
March 2018	30,740	31,450
February 2018	30,460	31,370
January 2018	29,940	31,140
December 2017	29,020	30,080
November 2017	29,670	30,240
October 2017	29,890	30,480
September 2017	30,170	30,900
August 2017	28,990	30,370
July 2017	28,110	29,480
June 2017	29,470	30,070
May 2017	28,900	29,810
April 2017	29,460	30,280
March 2017	29,010	30,290
February 2017	29,780	30,480
January 2017	28,870	30,210
December 2016	28,360	29,700
November 2016	30,060	32,660
October 2016	30,270	45,588
September 2016	31,290	31,970
August 2016	31,420	32,290
July 2016	31,190	32,140
June 2016	29,200	31,780
May 2016	29,020	30,700
April 2016	28,750	30,640
March 2016	28,800	29,930
February 2016	27,260	29,750
January 2016	25,430	27,240
December 2015	25,370	26,040
November 2015	25,540	26,860
October 2015	26,300	27,350
September 2015	26,300	27,080
August 2015	25,070	27,400
July 2015	25,130	26,780
June 2015	26,760	27,440
May 2015	27,040	27,980
April 2015	26,540	27,460
March 2015	26,190	27,190
December 0	3	29,830

22 Carat Gold Rates

Months	Lowest Price 22 Carat Gold – Rs. per 10 grams	Highest Price 22 Carat Gold – Rs. per 10 grams
September 2018	28,200	29,360
August 2018	28,100	28,850
July 2018	28,460	29,250
June 2018	29,060	29,700
May 2018	29,560	31,550
April 2018	29,120	30,030
March 2018	28,860	29,570
February 2018	28,580	29,490
January 2018	28,060	29,260
December 2017	27,140	28,200
November 2017	27,790	28,360
October 2017	28,010	28,600
September 2017	28,290	29,020
August 2017	27,110	28,490
July 2017	26,230	27,580
June 2017	27,570	28,170
May 2017	27,000	27,910
April 2017	27,610	28,420
March 2017	27,160	28,440
February 2017	27,930	28,630
January 2017	26,980	28,360
December 2016	26,470	27,650
November 2016	28,010	30,600
October 2016	28,220	30,470
September 2016	29,250	29,890
August 2016	29,380	30,190
July 2016	29,140	30,050
June 2016	27,260	29,730
May 2016	27,110	28,760
April 2016	26,830	28,700
March 2016	26,870	29,800
February 2016	25,430	27,800
January 2016	23,720	25,420
December 2015	23,620	24,290
November 2015	23,790	25,080
October 2015	24,520	25,560
September 2015	24,560	25,350
August 2015	23,440	25,770
July 2015	23,440	24,990
June 2015	24,980	25,600
May 2015	25,220	26,190
April 2015	24,790	25,680
March 2015	24,410	25,420
December 0	2	27,950

Factors affecting price of gold in India

The factors which affect the gold price in India are listed below:

• Dollar dynamics – Generally, gold is used as a hedge against movements in the US dollar which means gold prices are inversely proportional to changes in strength of the US dollar. When the US dollar strengthens, gold prices in India tend to fall and when US dollar weakens, gold price rises.
• Import costs – In India, huge demand for gold is primarily met through gold imports, which means that import rates affect the price of gold within the country. Higher the cost of imports, greater will be the prices of gold.
• Interest rates on banks fixed deposits – Fixed deposit of banks is the most popular investment option chosen by millions of Indians after gold. When the FD rates fall, investors prefer to invest their money in gold as an alternative investment option. Therefore, when the demand for gold rises, the price of gold increases too.
• Economic stability – The price of gold generally rise at the time of global economic crisis, as gold is considered as a stable asset to invest upon compare to the other riskier assets. Investors tend to pull their money out of riskier investment and invest into gold. Also, gold has higher liquidity which continues to hold value at the time of instability also.
• Seasonal price – In India, demand for gold increases during auspicious occasions, festivals and marriages. The demand for gold rises, hence the price also rises due to the increased demand.
• Inflation – Gold price in India increases at the time of inflation. Since gold is bought to hedge against inflation, gold prices tend to rise when inflation is on upward trend.
• Demand-supply – Domestic production and supply of gold is limited in India. Major constraints in the global supply of gold tend to raise the price of gold. Similarly, when there is a decrease in the supplies of gold globally, it makes the metal price dearer in India.
• International prices – When gold prices increase in the international market, the price of gold in India also tends to increase as well. For example, when the central banks specially in US and Europe buys gold as a hedge against inflation, the price of gold moves upwards globally.

Why Gold Rate varies across different cities in India?

Gold rates vary across different cities in India mainly due to

• Local Taxes – The local tax rate differs from state to state. Some states levy higher taxes on gold than the others. This is one of the main reasons why gold is more expensive in some cities.
• Gold Associations – Local gold associations have enough power to fix the gold rates. It is true in case of larger cities including Mumbai and Chennai. Due to this reason, the price of gold changes from one city to another.
• Quantity of gold purchased – Purchasing gold in larger quantities tend to decrease the price of gold. Therefore, in larger cities where larger volumes of gold are purchased, gold prices tend to be lower.
• Transportation Costs – India imports most of its gold by sea. Probably this is the least important factor, but the transportation of gold from one location to another requires tight security arrangements and such expenditures potentially affect the gold prices locally.

What are the various gold options available to buyers in India?

Below given are the various forms of gold options which are available to buyers in India are

• Physical Gold Jewellery/Bars and coins – The primary method by which most of the Indian household’s purchases and store gold is in the physical form of gold jewellery, gold bars and gold coins. Investment in gold has become questionable after other forms of gold investments came into effect.
• Gold Exchange Traded Funds (Gold ETFs) – A gold ETF is an electronic form of purchasing gold used to track the domestic physical gold price. They represent physical gold in dematerialized form. One gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. They are usually traded on the National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd (BSE).When you redeem gold ETF you don’t get physical gold but the cash equivalent. Trading of gold ETFs takes place through a dematerialized account (Demat) and a broker, which makes it an extremely convenient way of electronically investing in gold.
• Gold Mutual Funds – Gold mutual funds are like open-ended funds. Investors may invest any amount of money at any time. The process of investing in gold mutual fund is easier than gold ETFs as it does not require a demat account. Investors can also use the SIP (Systematic Investment Plan) route to invest in gold funds, which is not possible with gold ETFs.
• Sovereign Gold Bonds (SGBs) – SGBs are government security gold bonds denominated in grams of gold. They are used as substitutes for holding physical gold. Investors will have to pay the issue price of the bonds in cash and it will be redeemed in cash on maturity. These bonds are generally issued by Reserve Bank on behalf of Government of India.

Do’s and Don’ts while buying gold

Following are the do’s and don’ts while buying gold

Do’s	Don’ts
Always check the purity of gold – One should always check the purity of gold at the time of purchasing gold jewellery. The easiest way to check for purity is to look for BIS hallmark. A hallmarked piece of jewellery will tell you the official proportion of the metal.	Avoid purchasing stone-studded jewellery – Always try to avoid purchasing the jewellery studded with precious or semi-precious stones than a simple gold piece because you are paying more than it’s worth. Always check the exact net gold weight before buying the stone-studded jewellery.
Cross check the gold pricing – Always ensure to cross check the gold prices before visiting the shop for purchasing gold jewellery. The price of gold keep changing from day to day based on the market rate. All jewellery stores display the daily bullion rates for the consumers to calculate the gold price	Avoid selling to other jewellers – Always ensure to avoid selling your jewellery to other jewellers from which you have not purchased because they may cheat you by not telling the exact resale value of your jewellery. So, it is always better to visit the same store to know the exact resale value.

To convert from	To	Multiply by
Troy ounces	Grams	31.1035
Troy ounces	Grains	480
Kilograms	Troy ounces	32.1507
Grams	Troy ounces	0.032151
Kilograms	Tolas	85.755
Kilograms	Bahts	68.41

FAQs on Gold Rates