Gold rate in Dhule

Dhule, also known as West Khandesh, is renowned for its production of pure milk and ghee, as well as abundant agricultural land and production of groundnuts.

Gold is primarily used for making jewellery and as an investment in Dhule and throughout India. Across India, gold has traditionally held value as a safe investment due to its historical appreciation. Weddings are one of the most common reasons for purchasing gold.

As per an India Gold Policy Centre (IGPC) report, the middle-income group (annual income between ₹2 lakh and ₹10 lakh) accounted for 56% of the total volume of gold sold in India in the past five years.

Gold rates in Dhule and across India may change on an ongoing basis depending on international trends. Read on to discover the gold rates in Dhule.

Factors Affecting the Gold Prices in Dhule

• Fluctuations in the international market: Since gold in India is usually imported from other countries, when gold prices rise internationally, they rise across India.
• Value of Indian Rupee: London's bullion market determines the spot price of gold, which is valued in dollars, euros and pounds. As a result, the Indian rupee's value influences gold's price. As the rupee's value falls, the exchange rate increases. Higher exchange rates result in higher prices.
• Correlation with the stock market: There is a negative correlation between the stock market and gold prices. As the stock market declines, many investors invest their surplus funds in safe assets such as gold. Therefore, gold's demand increases, resulting in a rise in its price.
• During festivals or wedding seasons: Gold demand usually increases during festive and wedding seasons, resulting in higher prices.
• Inflation: Gold prices are likely to rise during inflation. Since gold is often purchased to counter inflation, it increases the demand for gold, thereby increasing its value.
• Interest rate: Most Indian households prefer fixed deposits for savings and investments. However, as interest rates fall, gold becomes more popular for investment.

How Does GST Impact Gold Rates in Dhule?

The Goods and Services Tax (GST) regime came into effect in 2017. The GST on the value of gold is 3%, and the GST on the making charges of gold jewellery is 5%.

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

How is the Purity of Gold Evaluated in Dhule?

The purity of gold is certified by the Bureau of Indian Standards (BIS). Gold purity is certified through hallmarking. 

As of June 16, 2021, only hallmarked and certified jewellers can sell gold. However, it only applies to jewellers with an annual turnover exceeding ₹40 lakh. It means you can also purchase gold from some jewellers without a hallmark.

As per the Ministry of Consumer Affairs, the following components should be observed on hallmarked gold jewellery to ensure purity:

1. BIS Mark or Logo
2. Purity in Karat and Fineness (22K916, 18K750, 14K585)
3. Assay Centre’s Identification Mark or Number
4. Jeweller's Identification Mark or Number

22-Karat vs 24-Karat Gold

Gold rates depend on their purity. According to the World Gold Council, the following are the purity levels of gold -

• 24-karat gold - 99.9% purity (999 hallmarks)
• 22-karat gold - 91.6% purity (916 hallmarks)
• 18-karat gold - 75% purity (750 hallmarks)
• 14-karat gold - 58.5% purity (585 hallmarks)

Jewellery made from 22K gold is more durable than jewellery made from 24K gold due to the composition of other metals, such as nickel, silver and zinc.

24K gold is too soft and is not suitable for making jewellery. It is ideal for coins and bars.