How Gold Rate Is Calculated in India
Updated Daily • Gold Price Guide • India
Gold has always played an important role in India, not only as jewellery but also as a trusted investment option. Many people check gold prices daily, but very few understand how gold rate is calculated in India. This guide explains the complete process in simple language.
🌍 International Gold Price
The base price of gold in India depends on the international gold market. Gold is traded globally in US dollars,
and prices are decided on international commodity exchanges. Since India imports most of its gold, any change in
global prices directly affects Indian gold rates.
Before buying jewellery, it is always recommended to check today’s gold rate to understand the latest market price.
💱 USD to INR Exchange Rate
Gold is purchased internationally in US dollars but sold in Indian rupees. If the Indian rupee weakens against the US dollar, gold becomes costlier in India. A stronger rupee can reduce gold prices even when global prices remain unchanged.
📦 Import Duty on Gold
The Indian government charges import duty on gold imports. This duty is added to the base price and increases the overall gold rate. Any change in import duty has an immediate impact on gold prices across the country.
🧾 GST on Gold
In India, GST is applied on the value of gold as well as on jewellery making charges. This tax is included in the final price paid by buyers and is an important component of gold price calculation.
📊 Demand and Supply
Demand for gold increases during wedding seasons and festivals like Diwali and Akshaya Tritiya. Higher demand often pushes prices up, while lower demand keeps prices stable.
🏪 Jeweller Margin & Making Charges
Online gold rates usually show the base price. However, jewellery prices include jeweller margins, making charges, and operational costs. This is why final prices may differ between jewellers and cities.
Gold Rate = Pure gold price per gram
Jewellery Price = Gold Rate + Making Charges + GST
🚚 Transportation & Local Costs
Transportation, insurance, and local taxes also affect gold prices. Cities with higher logistics costs or stronger local demand may have slightly higher gold rates.
✅ Conclusion
Gold rate calculation in India depends on international prices, currency exchange rates, import duty, taxes, demand and supply, and jeweller costs. Understanding these factors helps buyers make better decisions when tracking daily gold prices.
This article is for informational purposes only and does not provide financial or investment advice. Actual gold prices may vary based on location, jeweller, and market conditions.