Gold price in India vs the international price: why they differ

You see a gold price on a global news channel, convert it in your head, and it doesn’t match your local jeweller’s board. Both prices can be right. The world price and the Indian rate measure gold in different units, in different currencies, and before and after Indian taxes.

The world price: dollars per troy ounce

Gold is traded globally in US dollars per troy ounce. A troy ounce is 31.1035 grams, heavier than the everyday ounce used for food. The widely quoted benchmark is set in London. India quotes gold in rupees per 10 grams, usually for 24 carat (999 purity) gold.

So the international price and the Indian rate differ because of four things: the unit, the currency, import taxes and shop charges.

Step by step: from dollars per ounce to rupees per 10 grams

Here’s the arithmetic with made-up numbers: a world price of 4,000 dollars an ounce, 88 rupees to the dollar, and an assumed 15% total import duty. None of these is today’s figure.

1. Dollars per gram: 4,000 ÷ 31.1035 = 128.60 dollars.
2. For 10 grams: 1,286.03 dollars.
3. In rupees, at 88: about 1,13,171 rupees. This is the “international price in rupees”.
4. Add the assumed 15% duty: about 1,30,146 rupees.
5. Add 3% GST at purchase: about 1,34,051 rupees per 10 grams.

The rupee matters as much as gold. If the world price stays at 4,000 dollars but the rupee slips to 90 a dollar, step 3 becomes about 1,15,743 rupees. Indian gold can rise even when world gold is flat.

Purity matters too. Most jewellery is 22 carat (916 purity), so its gold value is about 91.6% of the 24 carat rate. Check the hallmark and HUID to confirm purity.

The Indian taxes and charges

• Customs duty. India imports most of its gold, and imports pay customs duty. From 13 May 2026, the basic customs duty on gold rose from 5% to 10%, under Finance Ministry Notification No. 15/2026-Customs of 12 May 2026. An Agriculture Infrastructure and Development Cess (AIDC) is charged on top, and its rates for precious metals were revised the same day. Duty changes move the Indian price overnight.
• GST. Gold carries 3% GST. Reference rates are quoted without it.
• Making charges. On jewellery, the jeweller adds making charges for crafting, often a percentage of the gold value or a rate per gram. They aren’t regulated, and you rarely get them back when you sell.

Why city rates differ

The base price is the same across India. But jewellers in each city add their own transport and insurance costs, dealer margins and an allowance for local demand. So Chennai, Mumbai and Delhi can show slightly different rates on the same day.

Did you know? GreenFunds does not show live gold prices. For official reference rates, the India Bullion and Jewellers Association publishes morning and evening rates per 10 grams for 999, 995, 916, 750 and 585 purity, excluding GST and making charges. Gold futures also trade on the Multi Commodity Exchange (MCX).

Does this matter if you invest, not buy jewellery?

Yes. A gold ETF follows the Indian price of gold, so the rupee and import duty flow into its price too. It skips making charges, lockers and purity worries. Compare routes in gold ETF vs gold fund, and read the risks of digital gold before buying gold through an app.

The takeaway. The world gold price is a starting point, not the price you pay. Convert ounces to grams and dollars to rupees, then add import duty, 3% GST and, for jewellery, making charges. Gold pays no income, so it’s a store of value, not a source of passive income. For how a small gold slice fits a long-term plan, see how to build wealth.

More to read: gold vs silver as an investment, silver ETF explained, Sovereign Gold Bonds for existing holders, and gold as an investment.