Gold Rate Today in Gurgaon

Gurgaon (officially known as Gurugram) is a vibrant commercial hub, and it is located in Haryana. Gurgaon is a significant satellite city of Delhi and a part of the National Capital Region. Over two hundred fifty Fortune 500 companies have their local offices in Gurgaon. In terms of total wealth, it is one of the top ten cities in India. Gurgaon has the third highest per capita income in the country. It is located just 30 km (18.64 mi) away from New Delhi, the national capital.

After a couple of years of gloom due to COVID, Dhanteras in 2022 brought a celebratory mood among the gold traders in Gurugram. The main uses of gold in Gurgaon are for jewellery and investments, and the nation is one of the biggest metal consumers worldwide. In Gurgaon, gold is primarily used as a form of investment, in contrast to other countries where it is used for industrial purposes.

Particularly during periods of political or economic unpredictability, gold is widely regarded as a relatively safe investment. The cost of gold is relatively stable when there is peace, but it fluctuates when there is war. So, before you decide to buy gold, here is all the information you need to know about Gurgaon's gold rates.

Interesting Facts on Gold in Gurgaon (Gurugram)

Gurgaon has a mall dedicated solely to hallmarked gold. Drawing inspiration from Dubai’s gold souk, the Aerens Group built a multistoried Gold Souk Mall in Sushant Lok. This mall is spread across an area of 1.8 lakh sq ft. It was built in October 2004. Since then, it has become a go-to place for gold buyers to buy hallmarked gold jewellery in Gurugram. HUDA city and IFFCO Chowk are the nearest metro stations to this mall.

Some of the major brands that have opened their showrooms in Gurgaon’s Gold Souk Mall are:

• Alukkas
• B.C. Sen Jewellers
• Hazoorilal
• Bholasons
• Bishandayal Cuttackwala

Avenue Montaigne is the most visited floor in this mall. It houses around fifty leading Indian and international brands. Some of the leading ones include Cygnus, Sangini, Nakshatra, Asmi, Hammer Plus (Germany), Celeste (United Kingdom), etc. 

Impact of GST on Gold Rate

The Goods and Services Tax (GST) was introduced in India in 2017. The GST on the value of gold is 3%, and the GST on the making charges of gold jewellery is 5%. The making charge is the cost of producing and designing each piece of gold jewellery you purchase.

Three types of import duties are applicable on gold imports to India - Customs Duty (12.5%), Agriculture and Infra Tax (2.5%), and Social Welfare Surcharge (10% of Customs Duty). Total import duty (excluding GST) is therefore around 15% (12.5 +2.5) + a minimal Social Welfare Surcharge of 10% of Customs Duty (not the gold price).

Who Decides the Gold Rate in Gurgaon?

It is the jeweller associations that have a concrete say in the rates of gold in the particular city. In this case, The India Bullion Jewelers Association (IBJA) generally decides the gold prices in Gurgaon and other cities as well. Since IBJA are a group of jewellers from across the country, they have a huge weightage in gold-related decisions.

24K and 22K Gold Purity

24-karat and 22-karat gold define the different purity levels of gold. 

• 22K gold has 91.67% pure gold, and the remaining 8.33% consists of a mixture of metals (silver, zinc, nickel, copper, etc.). 22-karat gold is also called 916 purity or 916 gold. 
• 24K gold has 99.99% pure gold and no impurity. 24K gold is mostly used in gold bars, coins, and medical/electronic devices. 22K gold is the preferred choice of gold jewellery in Gurgaon. 

How is the Purity of Gold Evaluated in Gurgaon?

BIS (Bureau of Indian Standards) authorised laboratories assays and hallmarks purity of gold in Gurgaon. Check the BIS logo, jeweller logo, and Assaying and Hallmarking Centre’s mark in your gold jewellery before buying.

The following are some of the most popular karat marks, along with the corresponding percentages and parts-per-thousand values:

• 24K – 99.9% (999)
• 22K – 91.7% (917)
• 20K – 83.3% (833)
• 18K – 75.0% (750)
• 14K – 58.3% (583)
• 10K – 41.7% (417)

Investment Options for Gold in Gurgaon

• Gold Exchange Traded Funds (ETFs) - Open funds that are traded on the stock market are known as ETFs. Any amount of money may be invested at any time. 
• Sovereign Gold Bonds (SGBs) - Government securities known as "Sovereign Gold Bonds" were introduced in 2015. Physical gold, issued in grams, serves as the underlying asset. The Indian Bullion and Jewellers Association Limited publishes the closing rate for 24-karat gold, which is used to determine the price of these bonds.
• Jewellery - Gold is the most desired material to make jewellery in India. Gold jewellery is purchased for weddings and during the festive season.
• Bullion - Gold in the form of bullion is a preferred choice for significant traders and retailers. There are three types of bullion: ingots, bars and coins.
• Digital Gold - Digital gold is the most recent variety to hit the market. It enables buyers to purchase gold at current market rates from the convenience of their homes. Digital gold can be converted into gold coins or sold online by those who want to cash out. You can easily invest in digital gold through online platforms like PayTM and PhonePe.

Taxes on Gold in Gurgaon

The following taxes are assessed in Gurgaon on the purchase of gold:

1. Customs Duty: 12.5%
2. Agriculture Infrastructure and Development Cess (AIDC): 2.5%
3. Social Welfare Surcharge: 10% of Customs Duty
4. Goods and Services Tax (GST): 3%

Factors Affecting Gold Prices in Gurgaon

Supply and Demand

In Dehradun, the price of gold can vary depending on supply and demand. Like with most products, prices rise when there is a high demand but a limited supply. For instance, gold is particularly in demand during festivals. As a result, the cost of gold in Dehradun increases.

US dollar exchange rate

The US Dollar (USD) and gold move in opposition to one another. The dollar's value impacts gold rates because transactions involving gold and bullion are conducted in USD. The price of gold rises when the US dollar's value is weaker and falls when the dollar's value is stronger.

Governmental rules

Rates for gold are affected by government regulations on taxes and duties. For instance, tax rates on gold have increased as a result of the implementation of the GST (3%). In addition, the tax levied by the regional administration affects the price of gold in Gurgaon.

Inflation

The price of gold typically changes in direct proportion to the rate of inflation; thus, higher rates of inflation result in higher gold prices as a result of declining currency values. People typically prefer to keep their wealth in gold during inflation because it has a stable value over time, increasing demand for it. Gold is therefore regarded as a tool for hedging against inflation.

Import Duty

We all know India is an import dependant country. So, India imports huge quantities of gold to meet its national demand. Hence, import duty on gold plays an important role in setting the price of gold for the city in general. Higher import duty will attract higher gold prices and vice-versa.

Global Prices and Movement

Since India is one of the highest importers of gold, global prices play a crucial role in determining the price of gold. If the demand is high and supply falls short at the global level, then the price of gold is sure to rise. And this puts the trickle-down effect on other countries as well.

Reserve Bank of India (RBI) Gold Reserve Policy

All the apex banks of a country keep a certain gold reserve in their treasure. This is done to ensure a stable financial condition. When RBI starts procuring and buying more gold in their reserves, the price of gold is sure to rise. Buyers must keep this in mind.

Seasonal impact

The gold rates in Gurgaon spike during auspicious festivals and wedding seasons since people rush to buy gold ornaments during such occasions.

Cost of transportation

Due to the expense of transporting the gold, port towns like Mumbai and Chennai typically have cheaper fees than cities such as Gurgaon, which are far from the port.