The international benchmark
The LBMA Gold Price is set twice each London business day, at 10:30 and 15:00 London time, in an electronic auction. Banks, refiners and many contracts use it as the reference price for gold in US dollars per troy ounce.
Gold futures on COMEX in New York trade almost around the clock and move the price between those auctions. India’s exchange, MCX, trades rupee gold futures that follow the same global price plus Indian costs.
From dollars per ounce to rupees per gram
The landed price of imported gold in India is built up in four steps:
- Convert the unit: divide the price per troy ounce by 31.1035 to get the price per gram.
- Convert the currency: multiply by the US dollar to rupee rate. A weaker rupee raises the Indian price even when the dollar price is flat.
- Add customs duty: 15% of the value from 13 May 2026 (10% basic customs duty and 5% AIDC).
- Add or subtract the local premium: banks and bullion dealers quote a premium or a discount to the landed price depending on local demand and supply.
Worked example (illustrative numbers)
The example uses round numbers close to the market in late October 2026. It is not today’s rate; the live rate is on our Gold Rate Today page.
| Step | Calculation | Result |
|---|---|---|
| International price | Assumed | $4,000 per troy ounce |
| Per gram in dollars | $4,000 ÷ 31.1035 | $128.60 |
| Per gram in rupees | $128.60 × ₹95.00 | ₹12,217 |
| With 15% customs duty | ₹12,217 × 1.15 | ₹14,050 per gram |
| 10 grams of 24K | ₹14,050 × 10 | ₹1,40,500 |
From the gold rate to a jewellery bill
The rate for lower purities is worked out from the 24K rate by fineness: 22K is 91.6% gold, so its rate is about 0.916 times the 24K rate; 18K is 75%. Jewellers then add making charges, which differ by shop and design, and 3% GST.
| Item | Calculation | Amount |
|---|---|---|
| 22K rate per gram | ₹14,050 × 0.916 | ₹12,870 |
| Gold value | ₹12,870 × 10 g | ₹1,28,700 |
| Making charges (10% assumed) | 10% of gold value | ₹12,870 |
| GST at 3% | 3% of ₹1,41,570 | ₹4,247 |
| Total | ₹1,45,817 |
Why rates differ between cities and shops
- Each city’s jewellers’ association or large dealers publish their own daily rate, with different premiums and rounding.
- Transport, insurance and dealer margins differ.
- Some rates are quoted with GST and some without; compare like with like.
Frequently asked questions
- What is a troy ounce?
- The unit used for precious metals. One troy ounce is 31.1035 grams, heavier than the ordinary ounce of 28.35 grams.
- What customs duty applies to gold in India now?
- An effective 15% from 13 May 2026: 10% basic customs duty plus 5% AIDC. It was 6% from 23 July 2024 to 12 May 2026.
- How much GST is charged on gold?
- 3% on gold and on jewellery sold by a jeweller. If a jeweller only does job work on your own gold, that service is taxed separately.
- Why does the gold price in India rise when the rupee falls?
- Gold is imported and paid for in dollars, so each dollar of gold costs more rupees when the rupee weakens.
- Is this page investment advice?
- No. It explains how prices, purity and taxes work, with sources. It does not recommend buying, selling or holding any product. See our Financial Disclaimer.
Sources
- LBMA: precious metal prices
- CBIC: customs tariff and notifications
- Xinhua: India hikes import duty on gold, silver (13 May 2026)
- MMTC-PAMP: gold and silver import duty raised from 6% to 15%
- CBIC: GST rates for goods
- IBJA: published gold and silver rates
- MCX: Multi Commodity Exchange of India
This guide explains rules and prices for general information. It is not investment, tax or legal advice. Duty and tax rules change; check the official source before you act. See our Financial Disclaimer and Corrections Policy.