Gold rate in Cuttack

Cuttack is one of the oldest cities in Orissa, boasting a steady mix of ancient history and modern city life. It is also called the silver city in homage to Cuttack's famous Tarakasi or filigree art. This art form involves intricate patterns woven with gold or silver wires. Various jewellery items in Cuttack feature filigree art.

With its rich background in art, Cuttack has many gold jewellery enthusiasts. People in the city typically buy gold in large quantities during festive seasons. However, the rates fluctuate based on several factors.

Gold rates in Cuttack have been increasing over the past year. After hitting a low in March 2021, they have continued to rise gradually. This rise is backed by steady growth in demand and the inherent faith in gold as a store of value.

So, if you are planning to buy gold in Cuttack, continue reading as we look at the current gold rates in the city, factors that impact these rates and more.

Factors Affecting Gold Prices in Cuttack

• Inflation
  During high inflation, the value of the currency falls. However, gold rates are not impacted by fluctuations in currency value, prompting people to invest in gold. This rise in demand increases gold prices.
• Seasonal Demand
  During the festive season, there is a marked increase in the demand for gold in India. The higher the demand, the more the increase in gold prices.
• Currency Fluctuations
  Gold is traded in US Dollars in international markets. When importing gold, we convert US Dollars to Indian Rupees. Hence, fluctuations in USD affects gold prices in India.
• Import Duty
  India imports gold in large quantities to meet the market demand. Therefore, import duty plays a crucial role in determining gold rates. Currently, a 15% import duty, including Agriculture Infrastructure and Development Cess (AIDC), is levied on all gold purchases.
• Market volatility
  Gold prices are impacted during times of market volatility. To put this in perspective, when the Indian stock markets collapsed in March 2020 in the wake of the Covid-19 pandemic, we noticed a marked increase in the price of gold.

How does GST Impact Gold Rates in Cuttack?

The GST charged on gold in Cuttack is on two levels. First, the buyer pays 3% GST on the price of gold. Second, the buyer also pays 5% GST on the making charges. Making charges refer to the cost incurred by artisans to mould raw gold into ornaments or jewellery.

Besides these, a 15% import duty is charged on imported gold.

Before GST, gold buyers paid 1% VAT on gold's value and 1% sales tax. In the absence of a tax mechanism for the service sector, making charges did not apply.

Hence, GST implementation has raised the price of gold in Cuttack.

Investment Options for Gold in Cuttack

Like the rest of India, gold investments are popular in Cuttack.

Earlier, buying physical gold was the only way to invest in gold. However, physical gold has certain disadvantages. Challenges are numerous, from determining the gold's authenticity to the risks associated with storing it.

Hence, alternatives to physical gold are getting popular today. Sovereign gold bonds, gold mutual funds, gold exchange-traded funds — people have many options to choose from.

Another popular option is digital gold. It denotes buying gold online. However, in this case, you can start investing with as little as ₹1. Further, the seller stores the gold on your behalf, so you don't need to worry about storage hassles. However, the digital gold market in India is not regulated. So, proceed with caution and manage your risks.

Understanding 916 Hallmarked Gold Prices in Cuttack

The rate of gold depends on the quality and purity of the metal. According to the World Gold Council, 24-karat gold is considered the purest — it is 99.9% pure gold by volume.

Similarly, 22-karat gold is 91.6% pure gold by volume. When it comes to making jewellery, 22-karat is the preferred variety. The trace metals present in this alloy add to the durability and malleability of gold, allowing it to be moulded into ornaments. The 916 hallmark refers to the 91.6% purity of 22-karat gold. 

It is crucial to check the hallmark of gold jewellery before buying it. This hallmark is a certification of authenticity. The Bureau of Indian Standards (BIS) is responsible for hallmarking gold and certifying its quality.