The world price, the rupee, import duty and local demand: the four things that make up the gold rate you see each morning in India.
Every morning, jewellery shops across India put up a board with the day's gold rate. The number looks simple, but it is built from a few separate parts. Once you know them, you can tell why the rate moved, and why two cities or two shops can show slightly different numbers.
1. The world price of gold
Gold is traded all over the world, all day. The main reference price is set in US dollars for one troy ounce (31.1035 grams) of pure gold. When people say "gold rose today", they usually mean this world price went up.
India produces very little gold of its own, so almost all the gold sold here is imported. That is why the Indian rate follows the world price so closely.
2. The rupee–dollar exchange rate
Because the world price is in dollars, it has to be turned into rupees. If the rupee becomes weaker (for example, one dollar costs more rupees than last week), gold becomes more expensive in India even if the world price did not change. The opposite is also true: a stronger rupee makes gold a little cheaper here.
| What happens | Effect on the Indian gold rate |
|---|---|
| World price up, rupee same | Goes up |
| World price same, rupee weaker | Goes up |
| World price same, rupee stronger | Goes down |
| World price down, rupee weaker | Can stay almost the same |
3. Import duty and other taxes
The government charges a duty when gold is brought into the country. This duty is part of the price before the gold ever reaches a shop. When the duty is changed in the Union Budget, the gold rate jumps or drops on the same day by roughly the same percentage. For example, the duty was cut to 6% in the July 2024 budget and Indian gold prices fell sharply that day. From 13 May 2026 it was raised to 15% (10% basic customs duty plus a 5% farm-infrastructure cess), and prices rose the same way. Duty rates can change again, so treat these as examples, not today's rate.
GST (3%) is not part of the daily rate you see on boards and on this site. It is added later, on your bill. See our guide on GST on gold and silver.
4. Local premium and city rates
After duty, banks and bullion dealers sell gold to jewellers with a small extra charge (or sometimes a discount). This extra depends on demand: it often rises before weddings and festivals and falls in quiet months.
In many cities, a local jewellers' association announces a common rate in the morning, which is why most shops in one city show nearly the same number. Small differences between cities come from transport, local taxes and how much demand there is in that area.
The India Bullion and Jewellers Association (IBJA) also publishes benchmark rates twice on every working day, around noon and around 5 PM. They cover 999, 995, 916, 750 and 585 gold, are quoted per 10 grams and do not include GST or making charges. Many traders, banks and gold-loan lenders refer to them.
Putting it together
A simple way to picture it:
- World price per ounce (in dollars) ÷ 31.1035 = price per gram in dollars
- × today's dollar-to-rupee rate = price per gram in rupees
- + import duty and bank or dealer premium = 24 carat rate per gram
- 24 carat rate × 22 ÷ 24 = 22 carat rate; × 18 ÷ 24 = 18 carat rate
Then, at the shop, making charges and GST are added to reach the final price of a piece of jewellery.
How this site works out its rate
We start from the live world price in rupees, add the usual Indian duty and premium so the number stays close to local market quotes, and check the price three times a day. You can see each check in the "Today's updates" table on every city page. Our numbers are a guide: always confirm the rate at your shop before paying.
Key points
- The Indian gold rate mostly follows the world price and the rupee–dollar rate.
- Changes to import duty move the price immediately.
- Local demand adds a small premium that changes with seasons.
- GST and making charges are added on top of the daily rate, at the shop.
This guide is general information for buyers. Rules and tax rates can change; check with your jeweller, bank or a qualified adviser before big decisions.