Mixed trend in gold prices: Prices rose in Delhi, Mumbai and Kolkata, gold slipped in Chennai; Know the latest prices of 24K and 22K

New Delhi. Ahead of the upcoming festive season and weddings, the price of precious metals has increased in the Indian bullion market. A mixed trend is being seen in the prices of gold in the domestic spot and futures markets. While in the major bullion markets of North and West India, there was a rise in the prices due to buying by investors and dollar-rupee fluctuations, in Chennai, the major market of South India, there was a partial decline in the prices due to the slowdown in demand from local jewelers.

Amidst the uncertain environment in the global market regarding the US Federal Reserve’s interest rates and geopolitical tensions, investors are in demand for gold as a safe haven. Despite gold prices remaining stable on COMEX in the international market, this variation in prices across cities has been seen due to domestic transportation costs, local bullion association premiums and different VAT/tax structures of states.

The latest prices of 24 carat (pure gold) and 22 carat (jewellery gold) in four major metros of the country are as follows:

(Note: The above prices are indicative. They do not include 3% GST, Making Charges and local hallmarking charges. There may be variation in the final billing price at the retail jewellers’ level.)

According to bullion experts, the main reasons for the variation in gold prices in different parts of the country are:

1. Festive inventory restocking in northern and eastern markets: In Delhi, Uttar Pradesh and West Bengal, wholesale jewelers have increased physical purchases of gold to create new jewelery inventory ahead of Durga Puja, Navratri and Dhanteras, leading to a surge in spot demand.

2. Softening of local demand in Chennai: Due to profit booking after the recent rally in South Indian markets and normal supply at the local level, bullion traders offered discounts, due to which the prices in Chennai fell.

3. Currency and Local Premium: Apart from customs duty on imported gold, due to bank premium and freight charges being different in different states, a difference of ₹ 500 to ₹ 1,500 is often seen in the price in other cities as compared to Delhi and Mumbai.

Consumers should take special care of these parameters while purchasing jewelery or coins during the festive season:

• BIS Hallmark: Never buy gold without a 6-digit alphanumeric HUID (Hallmark Unique Identification) code. This code gives a government guarantee on the purity of every jewellery.

• Understand the difference between carats: 24 karat gold is 99.9% pure and is used to make coins or bars. Most jewelery is made in 22 karat (91.6% purity) or 18 karat (75% purity).

• Fixed bill and breakup: Enter the actual weight of gold, day’s price on carat basis, making charge and 3% GST separately in the invoice so that there is no loss at the time of re-sale or exchange in future.