Precious Metals Prices Today

How Is Gold Rate Determined in India?

Gold prices in India are primarily influenced by global spot prices traded on international exchanges such as COMEX in New York and the London Bullion Market Association (LBMA). The India Bullion and Jewellers Association (IBJA), headquartered in Mumbai, publishes official gold rates twice daily — morning and evening — that serve as the benchmark for jewellers, banks, and investors across the country.

The retail gold rate you see at your local jeweller includes additional charges on top of the IBJA rate: making charges (typically 8–25% depending on the jewellery design), Goods and Services Tax (GST) at 3%, and any import duty component already embedded in the base price. India imposes a 15% customs duty on gold imports, which significantly contributes to making Indian gold prices higher than international spot prices when converted at the prevailing USD/INR exchange rate.

City-wise gold rates in India vary slightly — typically by ₹100 to ₹500 per 10 grams — due to differences in local state taxes, transportation costs, and the demand-supply dynamics of each region. Cities like Chennai and Kochi in South India traditionally see slightly higher gold rates due to the region's strong cultural affinity for gold jewellery and higher overall demand.

22 Karat vs 24 Karat Gold — What Is the Difference?

Gold purity is measured in karats, with 24 karat (24K) representing 99.9% pure gold — the highest possible purity. However, pure gold is extremely soft and not suitable for making jewellery that must withstand daily wear. This is why most Indian jewellery is made from 22 karat gold, which contains 91.6% pure gold (also written as 916 gold) mixed with other metals such as silver, copper, or zinc to improve hardness and durability.

24K gold is primarily used for gold coins, gold bars, and gold ETFs (Exchange Traded Funds) rather than jewellery. If you are buying gold as an investment, 24K or 999 purity gold in the form of coins or digital gold is the preferred choice as it commands better resale value with minimal making charge losses. For jewellery purchases, 22K gold provides the right balance of purity and wearability.

Silver and Platinum — Investment Potential in India

Silver, often called the “poor man's gold,” is one of the most versatile precious metals with both industrial and investment applications. In India, silver is widely used in jewellery, silverware, religious artefacts, and increasingly in solar panels and electronics. Silver prices in India track international spot prices but are also influenced by local industrial demand and import duties. Silver's price is considerably lower than gold, making it accessible to a wider range of investors.

Platinum is rarer than gold globally but trades at a discount to gold in India due to lower domestic jewellery demand. Platinum jewellery is popular among younger buyers for its modern, contemporary look. From an investment standpoint, platinum has significant industrial applications in catalytic converters, fuel cells, and electronics, which creates sustained global demand. Indian investors can access platinum through hallmarked coins, platinum ETFs available on Indian exchanges, and certified bullion dealers.