Today’s Gold Price in India

Gold Price

Date: 29th Oct 2020

Price: 52,560.00 Rs.

MCX Gold Price in Rupees Per 10 Grams

What is Today’s Gold Price?

today's gold price

Gold is one of the most-used metals in Indian culture. Be it festivals, weddings, birthdays, or religious occasions, Gold is used in almost every occasion.

While some prefer to wear and give Gold jewellery on auspicious occasions, others like to use Gold coins.

Whatever the form is, Gold plays an important role in Indian culture.

However, the prices of Gold remain to be a matter of concern for people as well as industries such as precious jewellery industry. Therefore, we have made a list of factors that affect the price of Gold.

Factors Affecting Gold Price

Before searching for “today’s gold price”, it is very important to understand which all factors affect the Gold price.

What causes an increase and decrease in the price of Gold?

Check out the below-mention factors that will help you to understand: what drives the price of Gold?

Value of the U.S. Dollar

Gold metal is dollar-dominated; therefore, the price of Gold is inversely proportionate to the value of the United States dollar.

Higher the value of the U.S. dollar, lower the price of Gold.

A weaker U.S. dollar makes the price of gold higher because more gold can be purchased when the U.S dollar is weaker.

As a result, gold is often used to hedge inflation. Inflation is when prices rise and when the inflation is high, the demand for gold increases due to which the price of gold increases.

This holds true for both international inflations as well as Indian inflation.

Gold Reserves By The Central Banks

Number 2 factor on our list is the Gold reserve. It has a major effect on Gold Price Chart variations.

Central banks of the countries hold Gold and paper currency in reserve. When central banks of countries such as The United States Of America and India start procuring more gold, its price goes up.

In fact, many of the world’s nations such as the US Federal Reserve of the US and Reserve Bank of India have reserves that are composed primarily of Gold.

According to a report by Bloomberg, Russia has been the biggest buyer of Gold ever since the U.S. abandoned the gold standard in 1971. After Russia, Turkey and Kazakhstan are the biggest buyers of Gold.

To be precise, a total of 651 tonnes of gold in 2018 was bought by the countries, according to Bloomberg.

Worldwide Gold Jewellery Demand

Next on our list is the Worldwide Gold Jewellery Demand!

Countries such as India, China, and the United States are the largest consumers of Gold when it comes to jewellery.

According to the World Gold Council, in 2019, Gold jewellery accounted for approximately half of the gold demand.

Scenarios like this affect Gold prices.

Higher the demand for Gold jewellery, higher will be the Gold prices.

New Uses Of Gold: More Demand For Gold

Approximately 7.5% of Gold demand comes from technology and manufacturing industries where Gold is used to make medical devices such as stents and GPS units.

Gold is also used by NASA to protect its astronauts and equipment from radiation and heat in space. It is also used in catalytic converters as well as in the production of a range of chemicals that are used by people on a day to day basis.

Demand for such types of equipment also determines the prices of Gold.

Mentioned below are the uses of Gold (other than jewellery).

Medicine Industry:

Gold nano particles are used to diagnose diseases.

Disease diagnosing techniques use Gold nano particles to sense the presence of a target molecule at ultra-low concentration. This method helps with the early detection of the disease. 

Gold is also used in various drugs that are used to treat illnesses such as rheumatoid arthritis.

Environmental Uses

Gold nanoparticles are used to improve the efficiency of solar cells.

Gold is also used to help with groundwater contamination which is a common problem in industrialized areas. Gold helps to break down groundwater contaminants into their component parts.

Engineering & Aerospace

Gold is an efficient reflector of infrared light because of which it makes as a valuable coating for engineers in terrestrial settings.

Gold is also used as a coating on the windows because it reflects heat radiation and helps to keep buildings cool in summer and warm in winter which eventually lowers the energy costs and carbon emissions.

New Technologies

As technology is developing, Gold is being used in a variety of new technologies. For example, Gold nano particles are used as ink for plastic electronics. Gold nanotechnologies are also used in advanced data storage technologies such as advanced flash memory devices.

Trends Of Interest Rate

Before searching for “22ct Gold Price Today”, it is very important to understand that trend of Interest rate also affects the price of Gold. Interest rates on financial products and services affect the demand for Gold as well as its price.

With increased rates of interest on financial products and services, people tend to sell Gold to acquire cash. When the supply of Gold increases its prices are reduced.

Similarly, lower interest rates mean more cash in the hands of customers as a result of greater demand for gold; hence, increased price of the metal.

World’s Gold Production

The world’s gold production is another factor that affects the price of Gold.

Gold mining is done in the countries: China, South Africa, the United States, Australia, Russia, and Peru.

Today’s Gold Price in India & The Factor Affecting It

In India, a lot of people search for Today’s Gold Price and if you’re also one of them then check the below-mentioned factor that affects the Gold Price Chart variation in India. 

Global Movement In The Price Of Gold

If there’s any Global movement in the price of gold, the price of Gold in India is affected.

This is mainly because India is one of the largest importers of Gold. So, when the import prices change due to the global movement in the price of Gold, the change is subsequently reflected in India as well.

The History of Glittering Gold Of India

It is said that at first gold was discovered in streams in its most basic state, though some also believe that it was first found in its natural state by digging the ground of the ancient world.

Being amongst the first precious metals to be discovered by mankind, it is natural that it easily acquired the symbol of royalty. Given gold’s beauty and rarity, it soon was used as a status symbol in almost every culture that was able to get its hands on it.

Right from the early times, this precious metal started getting used for pieces of jewellery and later given its brilliance and resistance to tarnishing it was used as currency.

In fact, it would also not be wrong to say that gold is responsible for creating the concept of money! The first gold coins came as early as in 700 B.C. and they were used for trading before the people moved on to silver coins and then later to the barter system.

Why Is Gold So Valuable?

Gold’s value can be justified with the help of below-mentioned pointers

  1. It is beautiful in appeal. Its natural beauty attracts everyone.
  2. It is very easy to make jewellery out of Gold. Ornaments made with Gold are very valuable and hold an important place in every India’s woman’s life.
  3. Gold is non-allergic metal. It does not cause skin allergies.
  4. Gold is a dense, shiny, ductile as well as malleable metal. Its properties make it the best option to be used in medicines and aerospace equipment.
  5. Gold is less affected by climate. Therefore, the rooftops of the famous temples in India are made of Gold.

Gold Quest India

There are many different beliefs as to how gold was first introduced in India. Some of the popular ones have been summarised below.

It is said that in 100 CE, it was Kushan emperor Vima Kadaphises, who ruled virtually all over northern India, responsible for introducing gold coins to India. These coins depicted Lord Shiva, Kartikey and Buddha from Indian mythology.

Some of these coins also showcased the King as a bearded man in a long coat and trousers seen making a sacrifice on a small altar.

Though the gold coins were discovered then, they first got minted in the 6th century BCE. These were the punch-marked coins that had a single symbol, usually of a bull or a swastika.

The other theory behind the glittering gold is that it was introduced by the Indo-Greeks who are also known as Bactrian Greeks in 200 BC. In many parts, it is believed that they were the ones who introduced pure gold coins before Kushans.

However, that being said, even though it was Indo-Greeks who introduced gold coins, it was only in the time of Kushans that these coins were issued and circulated in large numbers.

At present, Indians are amongst the world’s biggest consumers when it comes to gold. This precious metal constitutes a major part of the total imports.

Difference Between Hallmarked Gold Rate and Normal Gold Rate?

A Brief Introduction About Hallmark Gold

The certificate issued to testify for the purity of gold is Hallmark Gold. Given today’s gold rate, buyers should ensure that they check the purity when they purchase gold.

Bureau of Indian Standards (BIS) is responsible for the hallmark certifications and they are recognised by the Government of India for the same.

This certification is in accordance with the rules and regulations of the BIS Act. These laser engraved details are available in the hallmarked gold.

Now About The Difference:

There are a lot of speculations in the market today with respect to the difference between hallmarked Gold Rate and Normal Gold Rate.

However, putting rest to the grapevine and speculations, the main point to clarify is that there is no difference between the two gold rates.

No one can charge you extra for providing you with hallmarked gold. The rate at which the hallmarked gold is sold is the same as what is with the normal gold.

However, one point to note, which makes all the difference in the world is that you are ensured of purity when you buy hallmarked gold, which may not be the case when you buy normal gold. So, hallmarking is a way to ensure the purity of the gold purchased.

Given the rising gold price chart, it is advisable to purchase the hallmarked gold rather than the normal one.

This is because even though there’s no difference in the rates, at least you can be assured of the quality. This is because it is always better to buy high-quality stuff especially when both items are available at the same rate.

Emphasizing the point once again, if there are no extra charges and there is no difference between the two, then you should go for the quality hallmarked products.

The testing for these precious metals is done in the essaying centres where a stringent quality check practice is followed.

At present, we don’t have enough essaying centres available in the market and the situation is worse for certain towns and smaller cities, where they don’t even have a single centre.

As we have seen, investors have often voiced their concerns about the lack of hallmarking centres in the country. There is a huge need to swiftly expand the essaying centres in such towns and cities, so that small artisans and jewellers can easily make use of it.

The government of India should address this concern and focus on starting more hallmarking centres, this will ensure that all the consumers in the country are provided with quality gold.

Per-Gram Gold Rate & How Is It Determined?

Given the excessive demand for gold in India, you must be up to date with the gold price chart.

Majorly gold is used for making jewellery and as investments, unlike countries like China where there is a huge demand for gold for industrial purposes, the case is not the same for India and there is minimal use of gold for industrial purposes.

However, in contrast to the strong demand, the domestic production of gold in India is limited and India heavily relies on gold imports every year.

Kolar mines in Karnataka are the only operational mines in India, at the moment and it is not surprising to see that they are grossly unable to meet the domestic demand.

Today’s gold rates vary even across different cities in India mainly because of the varying taxes and demands.

State taxes differ from one state to the other, where some states levy higher taxes, others do not. Next, owing to the varying population sizes and demographics, the demand for the precious metal is also different.

Even when we talk about discounts, they are usually given on purchasing large volumes and thereby, the gold prices in cities like Mumbai are lower.

Other than the two above-mentioned factors, carriage and local associations also have a role in setting the prices.

Indians tend to import gold by sea and the prices of gold differ at port cities like Chennai would have a lower price than what is there in Delhi, because of the lack of inland transport charges.

Lastly, cities also have their gold associations. These associations have a big say when it comes to setting the prices.

The yellow metal is measured in grams and troy weight. Before moving ahead it is important to understand the following points-

  • Karat represents the purity of gold when it is mixed or alloyed with base metals like copper. Note: 24K or 24 karat gold is considered to be 99.99% pure gold. 22K gold is 91.76% pure, and it means that the alloy consists of 22 parts gold and 2 parts of the alloyed metal.
  • Import duties are higher on 22k gold, and people prefer it more, given its durability
  • As for Carat, it is a unit of weight used to measure precious gems such as diamonds and pearls. They are abbreviated as ct and are often mistaken to denote size.

Gold Investment: Why Is Investing In Gold A Good Option?

Even though gold prices are highly fluctuating yet as seen by the trends, gold’s value tends to rise in the long-term. This is the primary reason why people invest heavily and hold on to gold for a long duration.

The precious metal does not get affected by geopolitical or economic turmoils and is especially a valuable commodity in case of emergencies. This is because they can easily be traded and they provide liquidity. They act as a hedge against inflation and are a great value addition for an investor’s portfolio.

Other than that being the versatile metal it is, it finds usage in manufacturing processes and it is popularly used to make jewellery or as a gifting item in the form of coins, bars and bullions. Apart from this, nowadays it is also woven into fabrics.

Even though it has a huge demand, there is a very limited supply available and that makes it all the more an irreplaceable asset. Maintained in gold reserves, it is also used to back paper currencies.

Gold is a preferred mode of investment for those who are financially savvy and are risk-takers.

The investors who trade in gold must have the risk-appetite required for such a market. Investing in it requires careful monitoring, because these prices may change because of many different reasons.

To ensure that investing in gold remains a good option for you, ensure that you are at all times equipped with the pricing information, carefully track, analyse and synthesize this information to gather fruitful results from your investment.

Indians also tend to buy gold as it is considered to be a safe investment, the people who invest in this precious yellow metal study the markets to analyse the fluctuations in prices, which will primarily dictate demand. Often used as an indicator of wealth, it also has a sentimental value associated with it and it has an important place in the religious and wedding ceremonies.

Given its demand, gold price today has skyrocketed, where 100 years back you could get gold for merely 20 rupees.

Nowadays, if you just have 20 bucks in your pocket, it would be ill-advised for you to even think about buying gold before you collect a sufficient amount.

The price of gold changes every day, like, today’s gold rate is Rs. 4600, for merely a gram, however, a week back it was Rs. 4500. Given its fluctuating nature, it is a good idea to keep up with everyday prices, before making a purchase.

Given our fascination with glitter and never-ending inclination to buy gold jewellery, it is important to have clarity before you invest.

To help you get clarity, we have prepared a list of factors that affect gold prices-

  • Import costs: Higher the import costs, higher will be the price of gold
  • Interest rates on banks fixed deposits: In case FD rates fall, investors prefer to move their money to gold
  • Strength of the US dollar: US Dollar and gold prices in India have an inverse relation, where if the dollar strengthens, gold prices today will fall and vice-versa.
  • Global economic stability: We’ll explain it with an example. The 22ct gold price today will rise if there is economic instability as it is a safer asset.
  • Seasonality: The prices tend to be higher during festivals, marriages and other auspicious occasions.
  • Supply: As we have mentioned above there is a dearth in domestic supply of gold and so this constraint can cause the prices to rise upwards.

Gold Import Business In India

The decline in gold imports has helped in lowering down India’s trade deficit to $ 152.88 billion during the last year, as against $ 184 billion a year ago. Gold imports have been recording negative growth since December 2019.

India is the largest importer of gold, which mainly caters to the demand of the jewellery commodity.

Gold imports, which have a hold on the country’s current account shortage, fell 14.23 per cent to $ 28.2 billion during 2019-20, according to commerce ministry data. Imports of the gold price chart stood at $ 32.91 billion in 2018-19.

The decline in gold imports has helped in lowering down the country’s trade shortage to $ 152.88 billion during the last fiscal, as against $ 184 billion a year ago.

Gold imports have been recording negative growth since December 2019. India is the largest importer of gold, which mainly caters to the demand of the jewellery sector.

In volume terms, the country imports 800-1000 tonnes of gold annually.

To mitigate the negative impact of gold imports on the trade deficit and CAD, the government increased the import duty on today’s gold rate to 12.5 per cent from 10 per cent.

Industry experts claim that businesses in this sector are shifting their manufacturing bases to neighbouring economies due to the high duty.

Gems and jewellery exporters had asked for lowering in import duty to 4 per cent.

Gems and jewellery exports declined 10-11 per cent to $ 35.8 billion in 2019-20.

The country’s gold imports dipped by 2-3 per cent in value terms to $ 32.8 billion in 2018-19.

The CAD, which is the difference between inflow and outflow of forex reserves, narrowed to 0.9 per cent of gross domestic product (GDP) or $ 6.3 billion in July-September 2019, from 2.9 per cent of GDP or $ 19 billion in the last year, according to the Reserve Bank of India’s data

Criteria To Carry Duty-Free Gold

If you’re planning to import gold with you from any foreign country then check out the below-mentioned allowance limit.

  1. For Male Passengers: The male passengers cannot carry Gold worth more than Rs 50, 000 (Rs Fifty Thousand).
  2. For Female Passengers: The female passengers cannot carry Gold worth more than Rs 1, 00, 000 (Rs 1 Lakh).
  3. For Children: Any child who wishes to import Gold to Indian from any of the foreign countries should have been the resident of that particular country for at least one year.

Gold Varieties & Difference Between 22K and 24K Gold

Gold has been discovered a lot of years ago and has since been one of rust-resistant, corrosion-resistant, and non-tarnishable precious metals associated with love and pride.

Many products such as ornaments and pieces of jewellery are derived from gold and they differ with the purity of gold. Karat was introduced to measure the purity and authenticity of gold. The most common ones are 24K and 22K followed by 18K and other karats. 

The 24K refers to the purest gold in natural form in bright yellow colour.

What this means is that there are 24 parts in the gold without any impurities of other metallic bodies. The 24K has about 99.8 per cent of gold. That said, no gold can be priced over 24K, i.e. 26k. 24K cold is more expensive than 22K.

It is, however, not as lasts longer as the 22K. Instead, it is pliable and less dense than the 22 karat gold, and as thus it is seldom used in jewellery and ornament manufacturing. But there are several coins made of the pure gold 24Karat.

Medical devices and electronic devices are some of the applications of the 24K. For children suffering from ear infections, a gold-manufactured medical device called the tympanostomy tube of gold is put in their ears to enhance middle ear aeration.

Pure gold is a lucrative investment due to its enormous value that has a potential of increasing.

It never loses value. Gold invested for a longer time will remain in good value the generation finds it, and can be easily converted into cash anytime for continuous earnings. 

The 22K gold follows 24K with purity and authenticity. Its purity is identified by 22/24*100 which generates 91.67% of gold content.

The remaining percentage, 8.33%, goes to other metals such as copper, zinc, silver and nickel. Because gold in natural form, 24K, is soft and pliable, any impurities added make it more durable and strong.

Pieces of jewellery are predominantly made with 22K which is harder and durable. But 22K is not often used for heavily studded ornaments or diamonds.

22K gold is subject to changes in colour based on the concentration of secondary impurities included in it. There could be a pink gold, rose gold, green gold, white gold etc.

A white gold signifies the concentration of alloys such as palladium and nickel, while a green cold signifies the concentration of zinc or silver.

If more copper is added, the gold could turn rose or pink. 24K remains bright yellow because there are no alloys in it. 

22CT gold price today is 49,980 rupees for 10 gram in Delhi.

Different Ways To Invest In Gold

There are a number of ways that can be used to invest in Gold. For example, you can shop for Gold coins, bars, gold jewellery, gold mutual funds or invest in gold exchange-traded funds.

Check out the detailed descriptions of each of the investment method below!

A. Physical Gold

Physical gold can be in the form of jewellery, gold coins, gold bars, and so on. Physical gold is considered as a capital asset for income-tax reasons on the gold price today.

Hence, profit on the sale of physical gold will attract capital gain tax liability in the hands of the transferor, except under certain circumstances like transfer of gold as a gift, by way of inheritance or will, etc.

The nature of capital gain and tax rate thereon shall depend upon the period of holding.

B. Gold Exchange Traded Fund (ETF)

Gold ETFs are traded fund schemes that invest the money taken from investors in terms of gold’s worth.

Thus, when someone invests in Gold ETF, he doesn’t own the gold but when he redeems the ETF he gets the cash equivalent to the market value of the deemed investment in gold.

Gold ETFs are traded on the stock market and can be in paper or dematerialized form. Gold ETFs are treated as debt funds and, hence, are taxed in the same way as physical gold.

C. Gold Monetization Scheme

The ‘Gold Monetization Scheme-2015’ was notified by the government of India to provide different alternatives to the people to monetize the privately-held stock of the yellow metal.

Under this scheme, a person gives consent to melt the gold deposited by them. Thereafter, the bank opens a “Gold Savings Account” for such person and credits the ‘quantity’ of yellow metal into his account.

Buying Gold Through Digital Platforms

If you’re thinking of buying gold online, then you must follow the below-given tricks and tips to ensure that your money is safe and you don’t get scammed!

➔   Know Your Gold Dealer

The anonymity that comes with the internet is both a boon and a bain, while it helps you find bargains, it also helps scammers to get away with fraud!

Even though there’s a great chance that you’ll get a good deal on eBay and Craigslist, it is better not to purchase from here.

➔  Research Your Gold Dealer

As it is true for other businesses, the same is for gold dealers, the more experiences you have, the more knowledge you’ll have in your pocket. So during your research phase, see how much experience the dealer has.

➔  What’s the Buzz?

Spend your time going through the reviews, as today, people often post how they feel about a particular service online. You’re likely to get an idea of how contended or discontented the customers are!

Buying Gold Through Paytm

Is it really safe buying Gold through Paytm?

Answer is: it is!

Paytm provides an option of buying Digital Gold via Gold Accumulation Plan. You can check out the Gold rate online on Paytm and then make the payment according to your requirements.

Under GAP (Gold Accumulation Plan), people can buy 24 Karat/999 Gold through Paytm. The cost of the Gold will be according to the current Gold rate in the market.

Transactions Via Paytm:

Paytm allows you to carry out the Gold transactions in the multiple of Rs 100. You can invest as low as Rupee 1 and as high as 1 Lakh.

Features Of Paytm’s Digital Gold  

There are a lot of features that are offered by the Paytm’s Digital Gold Scheme. These are:

  1. You can buy Gold in either grams or rupees.
  2. You can invest as low as Ruppee 1 in Gold. The minimum amount of Gold that can be redeemed is 0.01 gm.
  3. You can sell the purchased Gold at any point of time at any given day (irrespective of Bank holidays).
  4. Live Gold priecs are offered on per gram basis. These prices are inclusive of foreign exchange conversions, taxes and custom duty.
  5. The transaction price can only be availed for 6 minutes.

How To Check Purity Of Gold?

A piece of ornament that has a purity of one karat consists of 1 part gold and 23 parts other metals or alloys.

Purity can also be measured in parts per thousand and percentages.

To convert karats to percentages, divide the karat number by 24 and multiply the result by 100.

For example, to figure out the gold percentage in your 20-karat earring, divide 20 by 24, thus obtaining 0.833, or 83.3% gold content (which also gives to 833 parts per thousand).

This is how the most common parts-per-thousand authenticity marks correspond to standard karats:

999 = 24K

917 = 22K

833 = 20K

750 = 18K

583 = 14K

417 = 10K

How To Sell Gold In India

A. Bill or invoice

Whenever you buy any gold jewellery, it’s advisable to keep the bill or invoice, safely.

Genuine buyers/jewellers ask you to represent the bill when you sell gold ornaments.

By presenting the bill while selling gold, you can avoid conflict of interest as the authenticity of the gold is mentioned on the bill. In such cases, jewellers cannot cheat you.

B. Identify the worth of the gold

Before selling gold it’s advisable to take quotes from different jewellers selling gold at today’s gold price. This can help identify the value of the precious metal. If you know the exact worth of the gold, no jeweller can easily cheat you.

C. Decide the final price

Fixing the final price of gold is one of the most important things to consider before selling gold. The jeweller, who buys used gold, will liquefy the gold and the leftover gold which is pure is used to decide the final price of the yellow metal. This process is carried out at a minimal charge and is deducted from the final costs.

D. Selling the gold

It is always good to sell gold ornaments at the shop where you have made the purchase, as they offer a good gold price today. If you cannot sell your gold at the shop where you have bought it, you must choose the best jewellers as you get a fair price.