Gold Price Decoded: From Global Rates to Your Local Jeweller
Gold prices are quoted globally in USD per troy ounce, but in India, we buy and sell gold in grams, priced in Indian Rupees (INR). Understanding how to convert and interpret these prices helps investors track trends and understand market dynamics.
Step-by-Step Conversion
1. 1 troy ounce = 31.1035 grams
2. Multiply the USD/ounce price by the INR/USD exchange rate
3. Divide by 31.1035 to get INR per gram (base value)
4. Add customs duty, GST, and other premiums to get the final retail price
Components That Add to Gold’s Price in India
| Component | Typical Rate | Description |
| Base International Price | Varies | USD per troy ounce |
| Exchange Rate | ~₹84–₹85 | Conversion from USD to INR |
| Basic Customs Duty | 6% | Import duty on gold |
| GST | 3% | Applied at retail level |
| Dealer Premiums | 1–3% | Covers logistics, brand, and market margin |
Example Calculation (May 2025)
Let’s assume:
🠖 Gold price = $3,250 per troy ounce
🠖 USD to INR rate = ₹84.88
🠖 Basic customs duty = 6%
🠖 GST = 3%
Step-by-Step Table
| Step | Calculation | Result (INR) |
| 1. USD per gram | 3,250 ÷ 31.1035 | $104.48 |
| 2. INR per gram (base price) | $104.48 × ₹84.88 | ₹8,864.18 |
| 3. After 6% customs duty | ₹8,864.18 × 1.06 | ₹9,396.03 |
| 4. After 3% GST | ₹9,396.03 × 1.03 | ₹9,677.91 |
| Final Price (approx.) | ₹9,678/gram |
Summary for Investors
🠖 When you hear gold is $3,250/oz, it doesn’t directly translate to ₹8,800/gram.
🠖 You must factor in duties, taxes, and premiums, which can raise the price by 10%.
🠖 This understanding helps in comparing Indian retail gold prices with global trends.
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DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.
