Gold Rate Today in Gwalior

Gwalior, renowned for the rich heritage of the Scindia dynasty of the Maratha Empire and was one of the major locations of the Indian rebellion of 1857, holds historical importance in Indian history. The city has become a significant tourist attraction in central India, famed for its magnificent forts and palaces.

With innovative city projects coming in and the historical importance of the city, Gwalior is one of the major locations for gold trading. People buy gold primarily in the form of jewellery. They also buy gold as an investment. The Sarafa Bazaar is a hotbed for gold trading in Gwalior, and some well-known jewellers have set up their establishments in this area.

Are Gold Prices in Gwalior the Same As in Other Cities?

Gold Prices in India vary from city to city for numerous reasons. A town like Gwalior, steeped in its royal past, has had close ties with its gold trading community for many decades. Additional costs, such as transportation expenses and gold demand in a specific city, apply to gold. The selling price also includes the cost of delivery. Hence, the prices are different.

Factors that Influence Gold Rates in Gwalior

The major factors that influence the gold rates in Gwalior include the Rupee-Dollar conversion rate, inflation, prices of other metals, geopolitical concerns, and local conditions. Let us have a look at each of these factors below:

• Rupee-Dollar Conversion Rate

Gold in international markets is traded in the U.S. Dollar. So, if gold is imported from other countries, the conversion rate between the Indian Rupee and the U.S. Dollar plays a crucial role in influencing the gold prices in Gwalior. If the cost of the Indian rupee plummets against the U.S. dollar, the gold prices in Gwalior are likely to increase.

• Inflation

Inflation leads to a drop in the value of the currency. Consequently, gold prices surge.

• Prices of Other Metals

Various metals, such as copper, silver, etc., are alloyed with gold for manufacturing 22K and 18K jewellery. Variations in these metals' prices influence Gwalior's gold rates.

• Geopolitical Tensions

Gold prices are likely to vary continuously if there are territorial conflicts or a war between two countries. These variations lead to a surge in investments in gold. This increase in demand leads to a rise in gold prices.

• Local Market Conditions

One major factor affecting the gold rate in Gwalior is the local market condition. The making charges set by different jewellers, transportation charges, and state taxes are some local market factors that influence the overall gold price. Moreover, transportation costs affect the gold rates if gold is transported from other parts of the country. The rise in petrol or diesel prices in the country leads to an increase in transportation costs. Consequently, gold prices slightly increase.

Impact of GST on Gold Prices in Gwalior

 The implementation of the Goods and Services Tax (GST) in India made a major impact on the gold rate in Gwalior as well as across the country. The following taxes were levied on the refined gold before GST: 

• 10% Import duty
• 1.2% Value-added tax
• 1% Customs duty

The total taxes on the total cost (in percentage) = 12.2%

For instance,

Cost of refined gold = ₹1,00,000

Total cost paid by buyers to own the gold = ₹1,22,000.

 However, following the implementation of GST in India and the notification by the Finance Ministry of India, the below taxes were charged: 

• 12.5% Basic customs duty
• 2.5% Agriculture Infrastructure and Development Cess

Taxes to be paid till now (in percentage) = 15%

 For instance, let's take a hypothetical example.

Cost of refined gold = ₹1,00,000,

After the above taxes, the cost paid by buyers = ₹1,15,000.

 In addition, buyers need to pay 3% GST on this cost, according to the World gold council.

1,15,000 * 3/100 = 1,18,450

 Total cost paid by buyers to own the gold = ₹1,18,450.

 Total taxes paid post-GST (in percentage) = 18.5%

 This implies that the implementation of GST increased the gold prices in Gwalior.

 Comparison Between 24K, 22K, and 18K Gold

The unit used to measure the purity of gold is karats (K). The higher the karats, the higher the gold purity. As per the World Gold Council. 24K gold has a purity level of 99.9%. However, 22K gold has a purity of 91.6% and is alloyed with small amounts of copper, silver, and zinc. The 18K gold has a purity level of 75% and is alloyed with palladium.