Gold has been a popular investment tool worldwide for many years, especially in India. If you’re thinking of investing in gold or buying gold jewelry for personal use, you’ll need to keep yourself informed about the latest prices, trends, and other vital information before making any decisions. In this article, we’ll provide you with everything you need to know about the current gold rate in India, factors that affect gold prices in India, and tips to make an informed decision when buying gold. We’ll also share with you the recent updates on gold prices in India, which are updated daily and sourced from reputable jewelers in the country.
| Gold Type | Price (INR/10gm) | Price (USD/10gm) | Price (EUR/10gm) | Price (GBP/10gm) |
|---|---|---|---|---|
| 24k Gold | 59,795.14 | 1,931.54 | 1,808.07 | 1,566.44 |
| 22k Gold | 54,970 | 1,767.68 | 1,657.34 | 1,432.67 |
What is 24 Carat Gold? What is 22 Carat Gold?
Gold is available in different purities, and 24 carat gold is the purest form of gold, with 99.9 percent purity, which means it doesn’t contain any other metals. On the other hand, 22 carat gold is ideal for jewelry making and has two parts silver, nickel, or any other metal mixed with 22 parts gold. The mixing of other metals makes gold more stiff and appropriate for making jewelry. The 22-carat gold often reflects 91.67 percent of gold purity.
What is the Difference Between 24 Carat and 22 Carat Gold?
| Gold Type | Purity (%) | Texture | Corrosion Resistance | Usage |
|---|---|---|---|---|
| 24 Carat Gold | 99.9% | Soft, pliable, brittle, and bendable | High | Medical and electrical equipment, including computers, phones, and more |
| 22 Carat Gold | 91.67% | Hard | Less | Jewelry, bars, bullions, and coins |
As you can see from the above table, there are a few differences between 24 carat and 22 carat gold. 24 carat gold is softer, more pliable, and brittle, which means it can be easily bent and molded. Therefore, it’s mostly used in medical and electrical equipment, such as computers and phones. As 24-carat gold is the purest form of gold, it is also the most expensive. On the other hand, 22-carat gold is relatively hard and cannot be easily molded or bent. It is ideal for making jewelry, bars, bullions, and coins and is relatively inexpensive due to its lesser percentage of pure gold.
Factors Affecting Gold Prices in India
The price of gold keeps fluctuating, and several factors impact the daily gold rates in India. Some of the key factors are:
Demand and Supply Factors
Like any other commodity, demand and supply economics is a significant factor affecting gold prices. Increased demand with constrained or low supply usually results in a price hike. Conversely, oversupply of gold with stagnant or weak demand can push down the prices.
Inflation
During inflation, the value of the currency goes down, encouraging people to hold onto money in the form of gold. This results in a spike in gold prices as people view it as a hedging tool against inflation.
Interest Rates
Gold and interest rates tend to have an inverse relationship. As interest rates increase, people tend to sell off their gold to earn high interest. Similarly, when interest rates decrease, people tend to buy more gold, thus increasing demand.
Monsoon
A significant part of gold demand in India comes from rural areas, particularly farmers. This demand usually escalates after a good monsoon, harvest, and resultant profits.
Government Reserves
Governments, including the Reserve Bank of India, maintain financial reserves composed primarily of gold. However, if the reserve exceeds the gold sold by the government, the gold prices increase due to an insufficient supply.
Currency Fluctuations
Gold trade in the global market transacts in US dollars. During import, when the US dollars are converted to Indian rupees, the gold price fluctuates. Significantly, if the Indian Rupee depreciates, gold import turns to be costlier.
Geopolitical Factors
During geopolitical turmoil, such as war, the demand for gold tends to go up as investors park their funds in a safe haven. Thus, while a geopolitical turmoil negatively impacts the prices of most asset classes, it has a positive impact on gold prices.
Portfolio Diversifier
Gold has a low to a negative correlation with almost all major asset classes, making it a highly effective portfolio diversifier. Hence, experts recommend gold to protect one’s portfolio from volatility as it doesn’t influence the returns from most asset classes.
Recent Updates on Gold Prices in India
The current gold rate in India is INR 59,795.14 per 10 grams of 24 carats and INR 54,970 per 10 grams of 22 carats, respectively. Here are some recent updates on gold prices in India:
Gold Prices Little Changed in India
The gold rates in India are little changed as it gave up gains in the bullion markets amidst recording its third consecutive weekly loss. The gold rate in India was recorded at Rs 55,550 for 10 grams of 22 karats and Rs 60,600 for 10 grams of 24 karats.
Gold Price in India Dip
The gold prices in India dipped as it hit a two-month low in the bullion markets amidst ongoing debt ceiling crisis talks. The gold rate in India was recorded at Rs 55,650 for 10 grams of 22 karats and Rs 60,710 for 10 grams of 24 karats.
Gold Price Jump in India
The gold prices jumped in India as it traded in a tight range in the bullion markets following a shift in the investor’s focus towards the U.S. debt talks. The gold rate in India was seen at Rs 56,250 for 10 grams of 22 karats and Rs 61,360 for 10 grams of 24 karats.
Gold Price in Major Cities
Gold rates may vary from city to city based on various factors such as demand, octroi charges, state taxes, and transportation costs. Here’s a table outlining recent gold rates in major Indian cities:
| City | Price/10 grams of 24 carat gold (INR) |
|---|---|
| Mumbai | 60,010 |
| Delhi | 62,600 |
| Bangalore | 58,000 |
| Hyderabad | 58,000 |
| Chennai | 57,060 |
| Kolkata | 61,900 |
FAQs
1. Is it necessary to pay attention to gold rates every day?
No, it is not necessary to keep track of gold prices on a daily basis, but it’s always better to keep yourself updated on the current gold rates before making any investment or purchase.
2. How often do gold rates change?
Gold prices can change a few times a day. While the prices can remain consistent too for some time, at times, they fluctuate many times a day based on global factors.
3. What is the impact of GST on gold prices?
GST on gold jewellery is currently set at 3%, which is added to the making charges of the gold ornament. It does not influence the price of pure gold.
4. Is it wise to invest in gold?
Yes, making an investment in gold can be a wise decision in the long-term as gold has the tendency to provide strong returns.
5. Can I check the gold rates at a bank?
Yes, you can check the gold rates at your bank by visiting their website or visiting the nearest branch.
6. How do jewellers determine the making charge for gold jewellery?
Jewellers determine the making charge of gold jewellery based on the weight of the jewelry, labor charges, design and wastage that may occur while making the ornament.
7. Can I negotiate the making charge during the purchase of gold jewellery?
Yes, you can try negotiating with the jeweller regarding their making charges of gold jewellery, but it’s not always a guarantee that they will agree to it.
8. Can the gold rates be tampered with?
The gold prices are transparent, and each day’s gold price is published in the newspaper and online. It is highly unlikely that these rates are tampered with.
9. Does the gold rate differ when bought online or in-store?
The gold rates for online and in-store and the same in most cases. But, some online retailers might offer discounts on making charges and shipping costs.
10. What is the future of gold investment in India?
Gold has always been a preferred investment option for most Indians and is also proving to be a safe investment tool in the current global pandemic scenario. There is a good likelihood that gold will continue to perform well in the near future too.
In conclusion, gold has always been an important investment in India, and with the pandemic having a significant impact on most industries, many are looking towards gold investment to secure their future. It’s important to keep track of gold rates before making any investment or purchase, and with this guide, we hope that you’re better informed regarding the latest gold rates.
