Gold Rate in India

India gold market: Trends, prices and buying guide

India is the world's second-largest consumer of gold after China, but the bulk (over 90 per cent) is imported into the country. In fiscal 2026, gold imports surged in value to $72 billion, mainly because of rising international prices. Gold accounts for about 10 per cent of India's total imports. The country also ranks among the top five in the world in terms of gold reserves, with over 880 tonnes (compared with more than 8,100 tonnes in the United States, which has the largest reserves).

To keep readers informed, Khaleej Times brings you the latest rates for 24K, 22K, and 18K gold.

Who buys gold in India?

Unlike in many other countries, the yellow metal is not merely an investment asset, but also plays a significant role in weddings, festivals and family traditions. It is considered a store of value as well as a symbol of wealth. Gold also plays a key role in many rituals. Most people, both in urban and rural areas, buy gold during festive occasions including Diwali (nationwide), Akshaya Tritiya, Pongal, Onam and Ugadi (in the south), Durga Puja (in the east), Gudi Padwa (in the west), and Baisakhi and Karva Chauth (in the north).

The Indian Bullion and Jewellers Association and the All India Gem and Jewellery Domestic Council revealed that gold spending in the country during the five-day Diwali festival in 2025 reached Rs700 billion to Rs1 trillion ($8 billion to $11 billion).

Gifting gold is also deeply ingrained in the country, especially during marriages. According to the World Gold Council, weddings generate about half of the annual gold demand in India.

What is the breakup of gold holdings in the country?

While the World Gold Council estimates India's gold holdings at about 25,000 tonnes (worth around $2.4 trillion), other estimates range up to 35,000 tonnes. However, much of it remains locked in unproductive assets in homes, temples and other religious places. According to one recent estimate, 70 per cent of gold in India is held by households with annual incomes of less than Rs500,000 (less than Dh20,000).

Is gold more expensive in India?

The Indian government earlier this month hiked the effective import duty on gold to 15 per cent from six per cent to ease pressure on the country's foreign exchange reserves due to the Gulf war. It is estimated that a 30-40 per cent fall in gold imports could save the country $25 billion in foreign exchange reserves.

What factors influence gold prices in the country?

Key factors influencing the price of the yellow metal include the USD-INR exchange rate, global gold trends and prices, inflation and interest rates, government policies and duties, and seasonal and cultural demand.

Tips for buying gold and jewellery in India

An important step is checking the purity of the gold used in jewellery. The Bureau of Indian Standards certifies and hallmarks gold, so it is best to opt for BIS-certified gold.

Cross-checking prices is another important aspect. Most jewellery stores display daily rates. Making charges vary, and jewellery buyers can negotiate prices at stores. Festive seasons are also a good time to buy gold and jewellery, as many companies offer attractive discounts.