18K Gold Rate Today in Madurai

Madurai, a city in the state of Tamil Nadu situated on the bank of river Vaigai is famous for its temple, tradition and heritage. Gold holds a significant place in the people of Madurai’s hearts as it's often bought as a tradition than anything else. People of the city love to buy gold both for personal reasons and also for investment purposes. 
Let's dive deep and understand more about the gold rate of the city, factors affecting the gold rate and much more.

What to consider while buying gold in Madurai

• Purity plays an important role while buying the gold, before buying the gold the buyer should check the hallmark which ensures the gold's authenticity and purity and also ask for the certificate of authenticity from the seller.
• Jewellers charge the making cost on the gold jewellery which differs from seller to seller so before purchasing the jewellery the buyer should check the making charge and make an informed decision. 
• Choose a reputed jeweller or your family jeweller for authenticity, as a fraud in the jewellery market is quite common these days. Make sure the jeweller follows ethical practices and gives you a GST bill while purchasing.
• Always check the weight of the jewellery before purchasing and make sure to ask whether this includes the weight of gems and stones or not.
• If you are making an online purchase of gold jewellery do check the packaging and delivery policy of the seller. Make sure the jeweller uses a safe and reputed courier service and gives you insurance coverage for your asset during transit.
• Check whether the jeweller gives you the bill that mentions weight, purity, hallmark etc. Also, check the return and exchange policy of the jeweller.

Why do gold prices keep changing in Madurai

Any change in the global gold market affects the price of gold in Madurai such as changes in demand, economic conditions, geopolitical events, or currency movements.  
The exchange rate between the Indian Rupee (INR) and other major currencies has a direct influence on the gold price in Madurai in which the US Dollar plays the most important role. Local demand and supply also play an important factor such as festivities, cultural traditions, wedding season, etc. Government policies and taxes, such as import duty, customs etc also affect the price of gold in Madurai. Market speculation and investor sentiment are other factors that can affect gold prices.

Taxation on Gold Rates in Madurai

Gold in India is subject to taxation either on purchase or on sale.
On the purchase of gold, the seller charges GST @ 3%. When you sell the gold, taxability depends upon the period you hold the gold. If you sell gold within 3 years of buying it, any profit you make is called short-term capital gains and are taxed at slab rate whereas, if you sell gold after owning it for 3 years or more, any profit you make is called long-term capital gains and taxed @ 20% with indexation.

How is the Gold Rate determined in Madurai

In Madurai, the gold rate is determined by many factors. The international price of gold is the most important factor, as it sets a benchmark for gold prices globally. Supply and demand of gold by locals play a crucial role. If the demand for gold is high and the supply is limited, it can increase the prices. Additionally, local factors such as festivals, weddings, and cultural traditions impact the gold rate in Madurai. The Reserve Bank of India also influences prices, as increased buying by the central bank can reduce the gold supply in the local market.

Factors affecting gold rates in Madurai

• Physical demand for Gold: In India, the Indian Bullion and Jewellers Association will fix the prices of gold. The association determines rates based on the rates that are fixed by the biggest dealers in the city, the local import duty and the price is based on the formula of the futures market of the Multi Commodity Exchange. 
• Interest rate: Interest rate and gold price have an inverse relationship with each other, with an increase in interest rate people prefer to sell gold while with a decrease in the interest rate they buy gold.
• Demand and Supply of Gold: The Demand and the supply of gold affect the prices. Purchasing physical gold provides the most direct exposure to the gold. Gold may be demanded for ornamental purposes or investment purposes. 
• Currency fluctuations: It also influences the price of gold. Gold is traded in US Dollars in the international market. The rupee-dollar conversion impacts price.
• Central Bank policies: Central Bank also does the sale and purchase of gold and holds reserves of gold which affect the price of gold in the market.