How is the Gold Price Today Calculated?
The gold price you see on this page is derived from the international spot price, which is the rate at which gold is traded in real time on global bullion markets such as London and New York. This rate is quoted in US Dollars per troy ounce (31.1035 grams), and our tracker converts it into Indian Rupees per gram, per 10 grams, and per tola using the live USD to INR exchange rate.
It's important to understand that the international spot price is not the same as the price you would pay at a local jeweller. The retail price in India is typically higher because it includes:
- Import Duty — currently around 6% on imported gold
- GST — 3% Goods and Services Tax applicable on gold purchases
- Dealer or Jeweller Premium — varies by city, brand reputation and demand, often 2-8%
- Making Charges — applicable only on jewellery, not on bars or coins, and varies significantly by design complexity
We have added an "Estimated India Retail Price" calculator above the gold and silver sections so you can adjust the dealer premium slider and get a closer estimate to what you might actually pay in the market.
Factors That Affect Gold and Silver Prices
Gold and silver prices are influenced by a complex mix of global economic and market factors:
Factors affecting Gold price
- US Dollar strength — gold and the dollar typically move in opposite directions
- Inflation expectations — gold is widely seen as a hedge against inflation
- Central bank buying — large purchases by central banks like RBI or the People's Bank of China can push prices up
- Geopolitical tension — wars, conflicts and political instability drive safe-haven demand
- Interest rates — higher interest rates generally reduce gold's appeal since it doesn't pay any yield
Factors affecting Silver price
- Industrial demand — silver is used extensively in electronics, solar panels and medical equipment
- Mining supply — disruptions in silver mining output directly affect available supply
- Investor sentiment — as a more volatile metal, silver attracts speculative trading
- Gold price movement — silver often follows gold's trend, but with larger percentage swings
24K vs 22K vs 18K Gold — Which One Should You Buy?
| Karat | Purity | Best For |
|---|---|---|
| 24K | 99.9% pure | Investment — coins, bars, Sovereign Gold Bonds |
| 22K | 91.6% pure | Traditional Indian jewellery — necklaces, bangles |
| 18K | 75% pure | Lightweight western-style jewellery, diamond settings |
| 14K | 58.3% pure | Everyday wear jewellery, more durable but less pure |
24K gold is too soft for jewellery that needs to withstand daily wear, which is why Indian jewellers typically mix it with small amounts of other metals to create 22K gold — strong enough for intricate designs while retaining high gold content. If you are buying gold purely as an investment, 24K coins, bars, or Sovereign Gold Bonds (SGBs) are usually the better choice since they carry no making charges.
How to Buy Gold and Silver in India
There are several ways to invest in or purchase gold and silver in India, each with its own pros and cons:
- Physical Gold/Silver — jewellery, coins, or bars from a jeweller or bank. Pros: tangible asset, can be worn. Cons: making charges, storage risk, lower resale value due to purity deductions.
- Sovereign Gold Bonds (SGB) — issued by RBI, pays 2.5% annual interest plus capital appreciation. Pros: no making charges, no GST, interest income. Cons: limited liquidity, fixed tenure of 8 years.
- Gold ETFs — traded on stock exchanges, backed by physical gold. Pros: easy to buy/sell, no storage hassle. Cons: brokerage and fund management fees.
- Digital Gold — buy small amounts online through apps, backed by physical gold in vaults. Pros: low minimum investment. Cons: not regulated by SEBI directly, storage fees after a certain period.
- Silver ETFs and Silver Bars — similar structure to gold options but for silver, useful for diversification.
Gold vs Silver as an Investment — Quick Comparison
| Aspect | Gold | Silver |
|---|---|---|
| Volatility | Lower | Higher |
| Primary Use | Store of value, jewellery | Industrial + investment |
| Entry Cost | Higher per gram | Lower per gram |
| Liquidity | Very high | High |
| Inflation Hedge | Strong | Moderate |
5 Tips Before Buying Gold or Silver Jewellery
- Always check the hallmark — look for BIS hallmarking which certifies purity in India
- Compare making charges across jewellers — these can range from 3% to 25% and significantly affect total cost
- Ask for a price breakdown — request separate line items for metal value, making charges, and GST
- Buy on auspicious occasions cautiously — festival premiums can push prices higher than usual
- Keep the bill safe — you'll need it for resale, exchange or insurance claims later