Gold isn’t just a commodity in India — it’s emotion, investment, hedge, and wedding essential all rolled into one. Whether you’re buying 22K jewellery or investing in 24K bullion, understanding why gold prices move is just as important as knowing today’s rate.
Here’s a practical, no-hype breakdown of India’s gold price, city differences, 22K vs 24K comparison, and the 5 real drivers behind price movements.
22K vs 24K Gold: What’s the Difference?
| Type | Purity | Best For | Price Level |
|---|---|---|---|
| 24K | 99.9% pure | Investment (bars, coins) | Highest |
| 22K | 91.6% pure | Jewellery | Slightly lower |
| 18K | 75% pure | Designer jewellery | Lower |
24K gold trades closest to international bullion rates.
22K gold includes alloy metals for durability.
City-Wise Gold Price Snapshot (Indicative Trend Pattern)
Gold rates vary slightly across cities due to:
• Local demand
• Transportation costs
• State-level taxes (minor variations)
• Jeweller margins
| City | 24K Trend | 22K Trend |
|---|---|---|
| Delhi | Slight premium | Slight premium |
| Mumbai | Near benchmark | Competitive |
| Chennai | Often slightly higher | Higher |
| Kolkata | Competitive | Competitive |
| Hyderabad | Moderate | Moderate |
Actual prices fluctuate daily.
How Gold Price Is Calculated in India
Indian gold price is derived from:
International Gold Price (USD per ounce)
× USD to INR Exchange Rate
-
Import Duty
-
GST
-
Dealer Premium
If INR weakens, gold becomes more expensive in India — even if global gold stays flat.
5 Major Factors Moving Gold Prices Right Now
1. US Dollar Strength
Gold is priced globally in USD. When the dollar rises, gold often faces pressure globally — but in India, a weak INR can still push prices up.
2. US Bond Yields
Higher yields make bonds more attractive compared to non-interest-paying gold. Rising yields often put pressure on gold prices.
3. Central Bank Buying
Central banks (including RBI) buying gold increase global demand and support prices.
4. Inflation Expectations
Gold is considered an inflation hedge. Higher inflation expectations typically increase gold demand.
5. Indian Seasonal Demand
Festivals like Diwali, Akshaya Tritiya, and wedding seasons create strong physical demand — supporting local premiums.
Gold Price Trend Pattern
Gold typically moves in long cycles:
• Rises during economic uncertainty
• Falls when risk appetite returns
• Strengthens when real interest rates fall
Over long periods, gold acts as a hedge against currency depreciation rather than a high-growth asset.
Should You Buy 22K or 24K?
Choose 24K if:
• You want pure investment
• You plan to hold long term
• You want easier resale
Choose 22K if:
• Buying jewellery
• Prioritizing wearability
• Combining investment + cultural purchase
For investment-only purposes, gold ETFs or sovereign gold bonds may also be alternatives.
Is Gold Expensive Right Now?
Instead of asking “Is it expensive?”, ask:
• Are real interest rates rising?
• Is INR weakening?
• Are central banks accumulating gold?
Gold price is rarely “cheap” in nominal terms — but its value depends on macro conditions.
Conclusion
India’s gold price today is shaped by global forces and domestic demand. While city-wise differences exist, the real drivers remain:
• USD strength
• INR exchange rate
• Bond yields
• Inflation
• Central bank buying
If you’re buying jewellery, compare 22K rates city-wise.
If you’re investing, track 24K trends and macroeconomic signals.
Gold isn’t just about today’s price — it’s about why the price is moving.
FAQs
Why does gold price differ across Indian cities?
Due to local demand, logistics costs, and jeweller premiums.
Is 24K gold better than 22K?
For investment, yes. For jewellery, 22K is more durable.
Does INR weakness increase gold price?
Yes. Since gold is priced in USD, a weaker INR makes gold costlier domestically.
When does gold usually rise?
During economic uncertainty, inflation fears, and falling real interest rates.
Is gold a good investment in 2026?
Gold works best as a hedge and portfolio diversifier rather than a high-growth asset.