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Live Gold Price In India
| Grams | 24 Carat Gold - Yesterday | 24 Carat Gold - Today | Daily Price Change |
|---|---|---|---|
| 0.5 gm | ₹4,816.61 | ₹4,790.49 | -0.54% |
| 1 gm | ₹9,633.22 | ₹9,580.97 | -0.54% |
| 5 gm | ₹48,166.10 | ₹47,904.85 | -0.54% |
| 10 gm | ₹96,332.20 | ₹95,809.70 | -0.54% |
* The above gold rates are indicative and do not include GST, TCS and other levies. For the exact rates contact your local jeweller.
SBNRI gold price chart shows you the current price of gold in the professional gold market. You can then use those real-time prices to place an order using the SBNRI app.
Gold has been a valuable asset for centuries, used in trade, jewelry, and as a form of investment. It has been a trusted store of value for centuries, protecting wealth through economic ups and downs. And history backs this up!
In 2000, gold was priced at just ₹4,400 per 10 grams, but by 2024, it had soared past ₹65,000 per 10 grams—a massive 1,400% increase.
Clearly, gold has consistently outperformed inflation and remains a rock-solid investment
But why do its prices fluctuate? How is it valued? What are the different ways to invest in it?
Whether you're a first-time buyer or a seasoned investor, understanding how gold works can help you make smarter financial decisions. Here’s a detailed guide that answers all your key questions around gold price fluctuation, types of gold investments, and NRI investment options in gold.
Gold prices do not remain constant. They change daily due to several economic and market factors, like:
1. Demand and Supply
Like any other commodity, gold prices fluctuate based on its demand and supply. When demand is high—such as during Indian wedding seasons, festivals like Diwali, or periods of economic uncertainty—gold prices tend to rise. This is because more people are buying gold, but the supply remains limited, creating upward pressure on prices. On the other hand, if there is an increase in gold supply due to higher mining output or lower consumer interest, prices tend to decline. Global supply chain issues, mining regulations, and central bank policies also play a role in determining the available gold in the market, which directly impacts prices.
2. Inflation and Economic Conditions
Gold is often considered a hedge against inflation, meaning it helps preserve the value of money when inflation is high. When inflation rises, the purchasing power of paper currency decreases, making people invest in gold as a safe store of value. This increased demand leads to higher prices. Similarly, during periods of economic slowdowns or financial crises, investors move their money into gold to protect their wealth. This phenomenon, known as the "flight to safety," often leads to significant price surges. In contrast, when inflation is low and economic conditions are stable, investors may prefer stocks or bonds over gold, leading to lower demand and stabilized or declining gold prices.
3. US Dollar Strength
Gold is priced in US dollars on the international market, which means its value is closely tied to the strength of the dollar. When the US dollar strengthens against other currencies, gold becomes more expensive for buyers using weaker currencies. This reduces global demand, causing prices to fall. Conversely, when the US dollar weakens, gold becomes cheaper for international buyers, increasing demand and pushing prices higher. The US Federal Reserve’s policies, interest rate decisions, and global currency fluctuations all play a role in determining gold prices in relation to the dollar.
4. Interest Rates & Central Bank Policies
Gold prices are also affected by interest rates set by central banks. When interest rates are low, traditional savings instruments such as fixed deposits and government bonds offer lower returns, making gold a more attractive investment. As a result, more people buy gold, driving up its price. On the other hand, when interest rates rise, investors are more likely to deposit their money in banks or invest in fixed-income securities that offer good returns. This shift in preference reduces the demand for gold, leading to a decline in prices. The monetary policies of the Reserve Bank of India (RBI) and the US Federal Reserve significantly influence interest rates and, in turn, gold prices.
5. Geopolitical Tensions and Market Uncertainty
Gold is often referred to as a "safe-haven asset" because it holds its value during times of geopolitical instability, war, or financial crises. Whenever there is global uncertainty—such as political conflicts, economic recessions, or trade wars—investors rush to buy gold to safeguard their wealth. This surge in demand leads to higher prices. For example, during the 2008 financial crisis and the COVID-19 pandemic, gold prices saw significant spikes as investors moved their capital from stock markets to gold. However, when global conditions stabilize and stock markets perform well, investors shift their focus back to equities, reducing gold demand and causing prices to drop.
6. Government Policies & Taxation
Government regulations and taxation policies play a crucial role in determining gold prices in India. The import duty on gold in India is currently around 12.5%, and an additional 3% Goods and Services Tax (GST) is applied at the time of purchase. These taxes make gold more expensive for Indian consumers. Additionally, if the government increases import duties or imposes stricter trade policies, gold prices rise further. Similarly, when duties are reduced, gold becomes more affordable. Other policy measures, such as restrictions on gold imports or incentives for digital gold investment, can also influence the demand and price of gold.
7. Global Gold Reserves
Central banks worldwide, including the Reserve Bank of India (RBI) and the US Federal Reserve, hold significant gold reserves as part of their financial stability strategy. When governments or central banks increase their gold reserves by purchasing large quantities, the global demand rises, leading to higher prices. Conversely, if these banks decide to sell a portion of their gold reserves, it increases supply in the market, causing prices to drop. Countries like China, the USA, and India play a key role in determining global gold reserves and, consequently, gold prices.
Gold prices are influenced by several global and local factors. From international market rates to local taxes and demand, each element plays a crucial role in determining how much you pay for gold in India. Here’s a detailed breakdown of the key factors affecting gold prices:
1. International Gold Price (Spot Price)
The global price of gold, known as the spot price, is set by the London Bullion Market Association (LBMA) twice a day. This price acts as the base rate for gold trading worldwide. Additionally, gold futures trading on platforms like the New York Mercantile Exchange (NYMEX) and India's Multi Commodity Exchange (MCX) also influence gold prices. If global demand for gold rises due to market uncertainty or economic instability, the spot price increases, making gold more expensive in India and other countries.
2. Currency Exchange Rate Impact
Since India imports most of its gold, the Rupee-Dollar exchange rate has a direct impact on prices. When the Indian Rupee weakens against the US Dollar, gold prices in India rise because it becomes more expensive to import. Conversely, if the Rupee strengthens, gold prices may decrease. Global currency fluctuations, influenced by US Federal Reserve policies, interest rates, and inflation levels, play a significant role in shaping gold prices in India.
3. Import Duties and Local Taxes
India imports nearly 800-900 tonnes of gold annually, and the price is significantly affected by import duties, Goods and Services Tax (GST), and state-level taxes. Currently, the import duty on gold in India is 12.5%, while an additional 3% GST is charged on purchases. Higher import duties and local taxes make gold more expensive for Indian consumers. If the government increases these levies, prices rise further, whereas a reduction in taxes can make gold more affordable.
4. Local Market Demand & Making Charges
Gold prices in India are also influenced by seasonal demand and making charges. Festivals like Diwali, Akshaya Tritiya, and Dhanteras, along with the wedding season, see a sharp rise in gold demand, pushing prices higher. Additionally, when market uncertainty increases, more investors turn to gold as a safe-haven asset, leading to a price surge.
Another major factor is jewelry making charges, which vary across cities and jewelers. Unlike pure gold rates, making charges are not standardized and depend on craftsmanship, design intricacy, and labor costs. These charges add to the final retail price of gold jewelry, making it more expensive in some regions than others.
Conclusion
Gold prices in India are determined by a mix of global market trends, currency exchange rates, import duties, taxes, and local demand. Keeping an eye on these factors can help you make informed decisions about buying gold, whether for investment or personal use.
Gold has always been a trusted investment due to its stability, liquidity, and protection against inflation. While traditional investments in physical gold remain popular, modern investors, including NRIs, have multiple options to invest in gold securely and efficiently. Here’s a detailed guide to various gold investment options and special considerations for NRIs.
1. Physical Gold – Traditional but Comes with Costs
Buying gold in the form of jewelry, coins, or bars is the most common investment method. However, it comes with additional costs like making charges and storage concerns.
NRIs can buy physical gold in India but should be aware of the customs duty applicable when carrying gold abroad. If buying large quantities, storing gold in India and investing in secure vault storage services can be a safer option.
2. Gold Exchange-Traded Funds (ETFs) – Secure & Liquid
Gold ETFs allow investors to own gold in digital form without dealing with physical storage. These are gold-backed securities traded on stock exchanges, reflecting real-time gold prices.
NRIs can invest in Gold ETFs through their NRE or NRO accounts, provided they have a trading and demat account in India. ETFs are a preferred choice for NRIs who want exposure to gold but do not want the hassle of storing physical gold in India.
3. Sovereign Gold Bonds (SGBs) – Government-Backed, Tax-Efficient Investment
Sovereign Gold Bonds (SGBs) are issued by the Reserve Bank of India (RBI) and provide an interest-bearing alternative to physical gold. These bonds track gold prices and offer additional benefits.
NRIs cannot invest in SGBs directly. However, if they bought SGBs while they were residents of India, they can continue holding them until maturity. If planning to return to India in the future, SGBs can be a great long-term investment strategy.
4. Digital Gold – Convenient & Flexible
Digital gold allows investors to buy and store gold online, without worrying about physical security. This gold is backed by 100% pure gold stored in insured vaults.
NRIs can invest in digital gold, but they must ensure that the platform they use allows NRI investments. Some platforms may have restrictions on holding periods or repatriation of funds, so checking terms beforehand is essential.
5. Gold Mutual Funds – Indirect Exposure to Gold Prices
Gold mutual funds invest in companies engaged in gold mining, refining, and trading, offering an indirect way to benefit from gold price movements.
Many Indian mutual fund houses allow NRIs to invest in gold mutual funds, but FATCA (Foreign Account Tax Compliance Act) regulations may apply for NRIs in the US and Canada. Checking the eligibility of the fund before investing is advisable.
NRIs investing in gold must understand the tax implications in India to make informed investment decisions and maximize their returns. Taxation depends on the type of gold investment and the duration for which it is held.
Short-Term Capital Gains (STCG): If gold is sold within three years of purchase, any gains are taxed as per the investor's income tax slab. This applies to physical gold, gold ETFs, and digital gold. For NRIs, this means the gains could be taxed at higher slabs depending on their total taxable income in India.
Long-Term Capital Gains (LTCG): If gold is held for more than three years, the gains are taxed at 20% with indexation benefits. Indexation helps reduce tax liability by adjusting the purchase price for inflation, making long-term investments in gold more tax-efficient.
Gold ETFs & Digital Gold Taxation: The taxation of gold ETFs and digital gold is the same as physical gold—STCG for holdings under three years and LTCG at 20% with indexation after three years.
Sovereign Gold Bonds (SGBs) Taxation: The annual 2.5% interest earned on SGBs is taxable, but the capital gains are tax-free if the bonds are held till maturity (8 years). This makes SGBs one of the most tax-efficient ways to invest in gold. If sold before maturity, taxation follows the LTCG rules.
NRIs should check if India has a Double Taxation Avoidance Agreement (DTAA) with their country of residence. This can help avoid paying tax twice—once in India and again in their resident country. By claiming tax relief under DTAA, NRIs can reduce their overall tax liability on gold investments.
Gold purity is measured in karats (K), indicating how much pure gold is present in the metal. Different karat values serve different purposes, from investment to jewelry making.
24K Gold (99.9% pure) – This is the purest form of gold, making it ideal for investment purposes. However, it is too soft for making jewelry and is mostly used for coins, bars, and bullion.
22K Gold (91.6% pure) – Mostly used in traditional Indian jewelry, this gold is mixed with small amounts of copper, silver, or zinc to make it more durable. While it retains high purity, it is not suitable for intricate designs due to its softness.
18K Gold (75% pure) – This is a mix of gold and alloys, making it stronger and more durable. It is commonly used in Western-style jewelry and high-end watches.
14K & 10K Gold – These have a lower gold content, making them more affordable and highly durable. They are often used in everyday jewelry and accessories.
If you're an NRI looking to buy gold as an investment, go for 24K gold in the form of coins or bars for the best value. If buying jewelry for gifting or personal use, consider 22K or 18K based on durability and style preferences.
Gold prices are not uniform across India. Although the international gold price serves as the base, local factors cause price variations from city to city.
Transportation Costs – Gold must be transported from import hubs like Mumbai and Chennai to different parts of India. Remote areas incur higher logistics costs, making gold more expensive there.
Local Taxes & Duties – While GST on gold is fixed at 3%, some states impose additional local levies or octroi charges, impacting the final price.
Jewelry Making Charges – Gold jewelry prices vary depending on the jeweler and city. Metro cities often have higher making charges due to brand reputation and craftsmanship costs.
Demand Variations – Festivals, weddings, and cultural trends influence gold demand. Metro cities like Delhi, Mumbai, and Bangalore often see higher demand, leading to slightly higher prices compared to smaller towns.
If you're an NRI purchasing gold in India, compare prices across cities before buying. Some jewelers offer online price checks and allow purchases at the lowest city price with doorstep delivery.
Gold has always been a reliable investment due to its stability, high liquidity, and ability to hedge against economic uncertainties. Here’s why it should be part of every investor’s portfolio:
1. Protection Against Inflation
Gold has historically retained its value even when the value of currency declines. During times of high inflation, the purchasing power of money decreases, but gold prices tend to rise, making it a strong hedge against inflation. This is especially relevant for NRIs whose earnings are in foreign currency but may have expenses or investments in India. Investing in gold ensures that their wealth remains protected from inflationary pressures.
2. Safe-Haven Asset in Economic Uncertainty
Gold is considered a safe investment during financial crises. When stock markets become volatile or economies slow down, investors flock to gold, driving up its price. Unlike stocks or real estate, gold does not lose value due to corporate bankruptcies, economic recessions, or geopolitical conflicts. This makes it a stable asset that provides security in times of uncertainty.
3. High Liquidity
One of the biggest advantages of gold is that it can be easily converted into cash. Unlike real estate, which may take months to sell, gold can be liquidated quickly in domestic and international markets. This makes it an ideal asset for NRIs who may need to access funds quickly while living abroad.
4. Portfolio Diversification
Investing in gold helps diversify an investment portfolio. Gold often moves opposite to stock markets, meaning that when equities fall, gold prices tend to rise. This reduces overall investment risk and provides balance during market downturns. For NRIs investing in Indian markets, holding some gold ensures that their portfolio remains stable during financial fluctuations.
5. Cultural & Emotional Value
In India, gold holds deep cultural and emotional significance. It is an essential part of weddings, festivals, and religious occasions. Many families buy gold as a store of wealth for future generations. This cultural connection makes gold an investment that is not just financially valuable but also emotionally meaningful.
NRIs investing in gold for their families in India can consider digital gold or gold ETFs, allowing them to buy gold from anywhere in the world without worrying about storage or safety. Later, it can be converted into physical gold whenever needed.
Gold is not just an investment; it plays a significant role in culture, finance, and industry.
Cultural & Religious Traditions – In India, gold is deeply tied to weddings, festivals like Diwali and Akshaya Tritiya, and religious ceremonies. It is seen as a symbol of wealth and prosperity.
Financial Security – Gold has historically been a safe-haven asset during economic uncertainties. Many people hold gold as a backup during financial crises or use it for gold loans in emergencies.
Industrial Use – Gold is widely used in industries like electronics, dentistry, and aerospace due to its high conductivity and corrosion resistance. As industrial demand grows, so does gold’s long-term investment potential.
If you're an NRI investing in gold for wealth preservation, consider Digital Gold, which offer returns linked to gold prices without storage hassles.
Gold remains one of the safest and most trusted investment options for both resident and non-resident Indians. It provides stability, liquidity, and long-term value. Whether an NRI chooses physical gold, ETFs, digital gold, or gold mutual funds, gold offers a hedge against inflation, economic uncertainty, and currency fluctuations.
For NRIs, the key factors to consider are taxation, RBI regulations, and repatriation rules before investing in gold. Choosing the right type of gold investment based on financial goals and risk appetite can help NRIs build a strong and diversified investment portfolio while ensuring their wealth remains protected.
1. Can I buy gold online in India?
Yes, you can buy gold online through banks, jewelers, stock exchanges, and digital gold platforms. Platforms like SB NRI offer digital gold, which is stored securely in insured vaults.
NRIs can buy gold online in India, but it's important to check payment modes and RBI guidelines before purchasing. Some platforms may require an Indian bank account or PAN details for transactions.
2. Is gold a good long-term investment?
Yes, gold has been a trusted investment for centuries. It serves as a hedge against inflation, currency fluctuations, and economic downturns. Unlike stocks, gold retains its value over time and is highly liquid.
3. Can I get a loan against gold?
Yes, banks and NBFCs (Non-Banking Financial Companies) offer loans against gold jewelry, coins, and bars. The loan amount depends on the gold's purity and market value. These loans have lower interest rates compared to personal loans and are processed quickly.
If you are an NRI and need funds, you may not be eligible for a gold loan from an Indian bank. However, if your family in India owns gold, they can pledge it for a loan and transfer the funds to you.
4. Why do gold prices change every day?
Gold prices fluctuate daily due to global economic factors, including:
If you are investing in gold from abroad, monitor currency exchange rates along with gold prices. A weak rupee can make gold more expensive when converting your foreign earnings to INR.
5. Which is better—physical gold or digital gold?
Both physical and digital gold have their advantages:
NRIs who cannot store physical gold in India should opt for Digital Gold, which are paper-based investments that track gold prices.
6. Can NRIs invest in Sovereign Gold Bonds (SGBs)?
NRIs cannot directly invest in new SGB issuances, but they can hold previously purchased bonds. If you already hold SGBs before becoming an NRI, you can continue holding them until maturity. However, fresh investments are not allowed.
If you're an NRI, you can consider investing in Digital Gold which does not have such restrictions.
7. What is the minimum amount needed to invest in gold?
If you're an NRI investing in gold mutual funds from abroad, check whether your investment platform allows NRI participation and whether TDS (Tax Deducted at Source) applies.
8. How is gold taxed in India for investors?
Gold investments are subject to capital gains tax:
NRIs investing in Gold should check Double Taxation Avoidance Agreement (DTAA) rules between India and their country of residence to avoid being taxed twice.
9. What are Gold ETFs, and how do they work?
Gold Exchange-Traded Funds (ETFs) are paper-based gold investments that trade on stock exchanges like shares. They track the market price of gold and offer an easy way to invest without handling physical gold.
NRIs can invest in Gold ETFs in India through NRE/NRO demat accounts, making it a convenient investment option.
10. Should I buy gold during festivals and weddings?
In India, gold demand peaks during festivals like Akshaya Tritiya, Dhanteras, and weddings, causing prices to rise. If you plan to buy gold as an investment, it's better to purchase it when demand is lower to get a better price.
If you visit India occasionally, try to time your gold purchases strategically during off-season months to avoid premium pricing. You can also buy digital gold anytime from abroad.
SBNRI shares gold prices from trusted sources, but we do not guarantee accuracy. Charts are for informational purposes only and not liable for errors or omissions.
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