Today 18K Gold Rate in India (2024)

₹55,215.00

You can purchase gold in India through jewellers, banks, etc. The gold rates in India are affected by factors like inflation, fluctuations in gold prices globally and the Central Gold Reserve. Gold is purchased in India primarily as ornaments and jewellery. Further, it is also traded as a commodity on exchanges like the National Commodity and Derivatives Exchange (NCDEX), the Multi Commodity Exchange (MCX) and the National Spot Exchange (NSEL).

If you are planning to buy gold in India, it is crucial to understand the current prices first. So, to make your purchase decision easier, let us explore the gold prices inIndia today, and understand how these prices are determined and by whom.

What is the Purity of 18k gold?

18k gold consists of 75% gold and 25% alloy metals. This means that for every 18 grams of 18k gold, 13.5 grams are gold, while the remaining 4.5 grams consist of other metals like copper, silver or nickel. People often choose 18k gold for their jewellery because it balances durability and affordability.

What is the Hallmark Symbol for 18-carat gold?

The hallmark symbol used for indicating the purity of 18k gold is the number "750". Hallmarking involves a certification process by authorised assay offices and independent organisations examining metals' purity. The "750" hallmark signifies that the gold content in jewellery is 75% while the remaining percentage comprises alloy metals.

Is 18K Gold The Same As 750?

Yes, 18K gold is the same as 750 gold. The measurement systems differ between countries; karats (K) are commonly used in the United States, Canada and the United Kingdom. The karat scale ranges from one to twenty-four, with the purest being marked as "24K". 18 karat gold consists of 75% gold meaning that out of the 24 parts, 18 parts are composed of pure gold.

In Europe and Asia, the fineness system is employed to assess purity. It employs a scale of 1 to 1000, with 1000 representing the purity level. Consequently, when we refer to 750 gold, it implies that it contains 75% pure gold.

Factors That Impact Gold Prices in India

Supply and Demand

Gold is a natural resource mined from the earth's reserves. Hence, gold prices in India largely depend on the supply. If there is a lesser supply of gold, gold prices may decrease.

On the other hand, the demand for gold increases during festivals or when the people of India buy gold to hedge against a bearish market. In such times, the higher demand causes gold prices in India to rise.

Import Rates

Once upon a time, India had adequate gold reserves. But the situation has changed now; Most of the gold we buy today is imported in its natural form. Hence, import rates are a vital factor in determining gold prices in India. Higher import rates could mean a higher gold price and vice-versa.

U.S Dollar

Gold is an internationally traded commodity. Most countries, including India, buy gold in the U.S. currency. This means the value of the U.S. dollar has a direct or indirect impact on gold prices. In India, the relation could be inversely proportional; when the dollar is weak, India could buy gold at a lower price. Hence, the strength of U.S dollars also affects gold prices in India.

International Relations

When the relationship between two countries is affected, it could halt or negatively impact the smoother import and export of gold. This, in turn, may spike the gold rates.

Indian jewellery market

We need to understand the relationship between gold prices and the Indian jewellery market, owing to Indian cultural beliefs. In India, gold plays a crucial role in household life, especially during the festive season and wedding season. As a result of the higher demand for gold during the festive season, gold prices go up as a result. According to a report released in 2019 by the World Gold Council (WGC), Indian households own around 25,000 tonnes of gold, which makes them the world's largest gold collectors.

Who Decides the Gold Rates in India?

The IBJA (The Indian Bullion Jewellers Association) plays a vital role in determining the daily gold rates in India. IBJA consists of the country's most prominent gold dealers. They account for the lion’s share of gold that is sold and bought in the country and hence, has the power to determine the gold price across the country.

Banks are the largest importers of gold in the country. However, they add a fee to the imported gold before selling it to a supplier, increasing the purchase price at the source. By the time it reaches you, the price you pay for gold includes various charges. For instance, when you buy gold jewellery, you may also need to pay a making price.

What are the Properties of 18K Gold?

18K gold has some properties that make it a popular choice for jewellery making. These include;

• Durability - Compared to 24k gold, 18k gold is tougher and more resistant to bending or scratching. This makes it an excellent choice for wear.
• Affordability - Opting for 18K gold is a budget option compared to pure gold, making it accessible to a wider range of people.
• Hypoallergenic Properties - Those with skin can find solace in knowing that 18K gold is hypoallergenic, meaning it's less likely to cause reactions.

How Does 18K Gold Compare To 24k Gold And 22k Gold?

24K gold represents the form with a composition of 99.9% gold and about 0.1% alloy metals. Due to its softness and malleability, it is not commonly used in jewellery making but is preferred for bullion and coins.

22K gold contains 91.67% pure gold and around 8.33% alloy metals. Its hardness and durability make it a suitable choice for crafting jewellery compared to its counterpart as well as being more budget-friendly.

Lastly, the 18K gold comprises three-quarters (75%) pure gold mixed with one-quarter (25%) alloy metals. This composition balances durability and affordability, favouring it for jewellery-making purposes. Additionally, it offers properties that make it an ideal choice for individuals with sensitive skin.

Does 18K Gold Fade?

Regarding fading, 18K gold doesn't undergo the process of losing colour or lustre. However, as time passes, it may lose its shine due to the accumulation of dirt and grime. Moreover, the alloy metals present in 18K gold can tarnish over time, resulting in a darker or yellow appearance.

Is 18k 916 gold?

No, 18-karat gold is not the same as 916 gold. 916 gold is a type of 22 karat gold that is very popular in India. It contains 91.6% pure gold, making it one of the purest forms of physical gold.

Is 18-karat gold worth buying?

Whether or not 18-karat gold is worth buying depends on your preferences. 18-karat gold contains 75% gold, making it a good balance between purity and durability, making it a popular choice for jewellery.

Gold vs. FD

Both gold and fixed deposits are popular investment instruments. However, both share some differences, too. To begin with, returns from FD are guaranteed and fixed. Market fluctuations or economic conditions don’t affect your interest income.

On the other hand, gold rates can fluctuate. This is because gold rates get decided daily. They could go up or down based on economic conditions. But per historical trends, gold rates have always gone up in the longer term.

Are 22 Karat and 24 Karat gold rates different in India?

What is Hallmark gold?

Is there a tax on gold purchases in India?

What causes the gold price in India to fluctuate so much?