India Gold Price in Dollars
India Gold Premium
India is the world's second-largest gold consumer. Indian gold prices typically trade at a premium to global markets due to import duties, GST, logistics costs, and strong domestic demand from jewelry fabrication and investment buyers. Persistent premiums signal robust physical demand, while narrowing spreads may indicate easing import pressure.
Prices are for informational purposes only. Use this page at your own risk. We accept no liability for errors.
Want India Gold reports?
Follow me on XIndia Gold Market Research & Analysis
What the India Gold Price and Premium Represent
The India gold price reflects the cost of physical gold in the Indian domestic market. Gold pricing in India is influenced by global spot prices, the USD/INR exchange rate, import duties, GST, and local supply-demand dynamics.
This page tracks the India gold price quoted in US dollars per troy ounce, enabling direct comparison with the international XAU/USD spot price used as the global benchmark.
Gold in India frequently trades at a premium to global markets. This difference, known as the India gold premium, measures the gap between the domestic Indian price and the international spot reference price.
India is the world's second-largest gold consumer after China. Sustained changes in the premium are closely monitored as indicators of physical demand strength, import flow patterns, and policy impacts on the domestic precious metals market.
Import Duties, GST, and the True Cost of Gold in India
India applies import duties and GST on imported gold. The combined tax burden adds approximately 18% above the landed international price (15% basic customs duty + 3% GST as of recent policy).
These costs are passed through to the domestic market price, meaning Indian buyers consistently pay more than the international spot price. The premium shown on this page captures these structural costs plus any additional demand-driven pricing.
Example: International Price vs India Delivered Cost
- International XAU/USD spot: $2,000 per ounce
- Custom duty (15%): $300
- GST (3%): $60
- Estimated India price: ~$2,360 per ounce
Actual premiums fluctuate based on rupee exchange rates, seasonal demand patterns, policy changes, and the pace of physical imports. During Dhanteras, Diwali, and the wedding season, premiums can widen significantly.
Why India Matters for Global Gold
India's gold demand is primarily driven by jewelry fabrication, which accounts for roughly 60–70% of total consumption. Investment demand for gold bars, coins, and gold-backed savings schemes makes up most of the remainder.
Indian gold imports can significantly influence global supply dynamics. When Indian demand surges, it pulls physical metal from international markets, particularly London and Swiss refining hubs.
- Jewelry fabrication — India is one of the world's largest gold jewelry markets, with deep cultural significance
- Investment demand — gold bars, coins, and sovereign gold bonds are popular savings instruments
- Central bank reserves — the Reserve Bank of India has been steadily increasing its gold reserves
- Import sensitivity — duty changes or trade policy shifts can rapidly alter import flows and premiums
MCX and the Indian Gold Market Structure
The Multi Commodity Exchange of India (MCX) is the primary futures exchange for gold trading in India. MCX gold futures serve as a price discovery and hedging platform for domestic market participants, including refiners, jewelers, bullion dealers, and institutional investors.
MCX gold contracts are denominated in Indian rupees per 10 grams and are closely correlated with global XAU/USD movements, adjusted for the USD/INR exchange rate and domestic premiums.
Seasonal Patterns in Indian Gold Demand
Gold demand in India follows distinct seasonal patterns tied to cultural and religious events:
- Dhanteras and Diwali (October–November) — the strongest period for gold purchases in India
- Akshaya Tritiya (April–May) — considered one of the most auspicious days to buy gold
- Wedding season (November–February) — drives sustained jewelry demand
- Pushya Nakshatra — recurring auspicious dates that trigger retail buying
These seasonal demand spikes can temporarily widen the India gold premium as importers compete for physical supply to meet domestic consumption.
Comparison of Market Characteristics
| Feature | India Market | Western Markets |
|---|---|---|
| Primary function | Physical consumption and jewelry | Price discovery and hedging |
| Key exchange | MCX (Multi Commodity Exchange) | COMEX, LBMA |
| Typical demand drivers | Jewelry, wedding demand, investment bars, central bank | Hedging, ETF flows, speculation |
| Tax impact | Import duty + GST (~18% above international) | Varies by jurisdiction |
| Currency exposure | INR-denominated, USD/INR adds volatility | USD-denominated benchmark |
Data Sources & Methodology
India gold prices are sourced from MCX reference rates. Prices are quoted in US dollars per troy ounce to enable direct comparison with the international XAU/USD spot price.
Data is collected every five minutes from market reference sources during trading hours and compared against the global gold spot price. The premium is computed on the fly to reflect the latest available market conditions.
The premium calculation uses the simple difference between the India reference price and the international spot price.
Frequently Asked Questions
Why is gold more expensive in India?
India applies import duties (15%) and GST (3%) on gold imports, adding roughly 18% to the international price. Logistics, refining margins, and strong physical demand further widen the premium.
What is the India gold premium?
It is the difference between the domestic Indian gold price and the international XAU/USD spot price, expressed in dollars per ounce. It reflects import costs, taxes, currency effects, and demand-supply dynamics.
How does the rupee affect India gold prices?
Gold is priced internationally in US dollars. When the Indian rupee weakens against the dollar, the rupee-denominated price of gold rises even if the international dollar price remains unchanged. This currency effect is a significant driver of domestic price movements.
How does India's gold demand compare to China?
India and China are the world's two largest gold consumers, together accounting for over half of global physical demand. India's demand is more seasonal and jewelry-driven, while China has stronger investment and central bank demand components.
When does India gold demand peak?
Demand typically peaks during Dhanteras/Diwali (October–November), Akshaya Tritiya (April–May), and the wedding season (November–February).
