Gold prices in India are not set by a single authority — they are the result of multiple global and domestic factors working together. Understanding this chain helps you make better buying decisions.
It starts with the international spot price, quoted in US dollars per troy ounce (31.1 grams) on exchanges like COMEX (New York) and the London Bullion Market Association (LBMA). This benchmark moves 24/7 based on global supply, demand, and macroeconomic events.
The next factor is the USD/INR exchange rate. Since India imports almost all its gold, a weakening rupee makes gold more expensive in India even if international prices are flat. This is why Indian gold prices sometimes move differently from global prices.
Import duty is a major component. India currently charges approximately 6% customs duty on gold imports (reduced from 15% in the 2024 budget), plus an Agriculture Infrastructure and Development Cess. These government levies directly increase the base price.
The India Bullion and Jewellers Association (IBJA) publishes daily benchmark rates based on the above factors. IBJA rates are the reference that most jewellers, banks, and gold loan companies use as their base price.
Local premiums add the final layer. Retail jewellers add their margin (1-3% over IBJA rates), which covers business costs, logistics, and profit. Cities closer to bullion hubs (Mumbai, Chennai) tend to have lower premiums than remote locations.
When you see a gold rate on this website, it is derived from IBJA domestic benchmarks combined with international spot data, giving you an indicative retail reference that closely tracks what you will find at major jewellery chains.