The gold rate in India changes every day, and sometimes during the day. It follows the world gold price, adjusted for the rupee, taxes and the local market.
1. The world gold price
Gold is traded around the world in US dollars per troy ounce, which is 31.1 grams. This international price moves with global demand, interest rates, the US dollar and world events. When it rises, Indian rates usually rise too.
2. The dollar-rupee exchange rate
India imports most of its gold and pays for it in dollars. When the rupee weakens against the dollar, gold becomes more expensive in India, even if the world price has not changed.
3. Import duty
The government charges customs duty on imported gold, and changes it from time to time in the Union Budget or by notification. The duty on gold was raised in May 2026, and Gold Bhav currently uses an overall rate of 15%. A duty change shows up in the Indian price straight away. You can see the jump on 13 May 2026 in the rate history.
4. The local market premium or discount
Banks and bullion dealers in India sell imported gold at a premium or a discount to its landed cost, depending on local demand. The premium tends to rise during festivals and the wedding season. When demand is weak, dealers may offer a discount instead.
5. GST
GST of 3% is added when you buy gold. The rates on shop boards are usually shown before GST.
Who publishes the benchmark rate
The India Bullion and Jewellers Association (IBJA) publishes benchmark rates twice on business days, at around 12:05 pm and 5:05 pm. They are based on quotes collected from the physical market. The Reserve Bank of India has used IBJA's rate for 999 gold to set the price of Sovereign Gold Bonds. Many jewellers start from IBJA's rate or their local association's rate.
Why your city's rate may differ
Rates differ slightly between cities and shops because of transport and insurance costs, local demand, and the margins of each shop and each local jewellers' association.
How Gold Bhav works out its rate
Gold Bhav takes the live world price and the dollar-rupee rate, adds import duty and a small market premium, and shows the result before GST:
- 24K per gram = world price per ounce × exchange rate ÷ 31.1035 × (1 + import duty) × (1 + premium)
- 22K and 18K follow from their gold content: 22/24 and 18/24 of the 24K rate.
You can see every step, and change the duty or the premium, under "How today's rate is made" on the home page. It is an estimate, so confirm the final rate with your jeweller.
Sources
- India Bullion and Jewellers Association, How IBJA rates are polled
- Reserve Bank of India, Sovereign Gold Bonds issue price, November 2015 (priced from IBJA's 999 rate)
- Central Board of Indirect Taxes and Customs, cbic.gov.in (customs notifications)