As Diwali 2024 approaches, gold prices are once again on the rise, reaching new heights in the domestic market. The yellow metal, known for its traditional significance during the festive season, has seen rapid fluctuations in recent months, and now the price is climbing quickly as demand increases. Let’s take a closer look at how much the price of gold has changed recently and what it means for buyers.
Gold Price on the Multi Commodity Exchange (MCX)
On the Multi Commodity Exchange (MCX), the price of future gold for the December 5 contract has shown a significant rise over the past week. As of Friday, October 18, the price of gold surged to Rs 77,750 per 10 grams. Just a week before, on October 11, the price was Rs 76,307 per 10 grams. This shows an increase of Rs 1,443 in just one week, reflecting a strong upward trend.
Domestic Market Gold Rates
In the domestic market, gold has followed a similar pattern. On October 11, the price of 10 grams of 24-carat gold was approximately Rs 76,000. By October 18, it had risen to Rs 77,410 per 10 grams. This price surge is especially notable as buyers prepare for Diwali, a time when gold purchases traditionally increase.
Gold Prices by Quality (According to IBJA)
The Indian Bullion Jewelers Association (IBJA) provides detailed information on gold prices by quality:
- 24-carat gold: Rs 77,410 per 10 grams
- 22-carat gold: Rs 75,550 per 10 grams
- 20-carat gold: Rs 68,890 per 10 grams
- 18-carat gold: Rs 62,700 per 10 grams
- 14-carat gold: Rs 49,930 per 10 grams
It’s important to note that these prices are exclusive of GST and making charges, which vary by region and can significantly impact the final cost.
Impact of Budget 2024 on Gold Prices
The major drop in gold prices after the presentation of Budget 2024 in July is worth noting. The government reduced the custom duty on gold from 15% to 6%, resulting in an immediate price drop of around Rs 4,000 per 10 grams. This downward trend lasted for several days, but the market has since bounced back with prices now on the rise once again.
How to Check Gold Purity
When buying gold, it’s essential to verify its purity. Most gold jewelry in India is made using 22-carat gold, while some use 18-carat gold. You can check the purity by looking for the hallmark, which indicates the carat level. For example:
- 999 is stamped on 24-carat gold
- 916 is for 22-carat gold
- 750 is for 18-carat gold
Before making a purchase, ensure you check the hallmark to verify the gold’s quality
