What Is the Gold Market?
The gold market is just the place (online and offline) where gold is bought and sold. Prices go up and down every day based on a few main things:
- World Gold Price
There’s no fixed price for gold everywhere. It’s decided by:
Big traders in places like London and New York.
Supply and demand (more people want it = price goes up).
Currency (gold is priced in U.S. dollars, so if the dollar gets weak, gold gets more expensive in other countries).
- Gold in India
India loves gold — we buy a lot of it for weddings, festivals, and saving. So our gold price depends on:
How much gold costs worldwide.
The value of the Indian Rupee (if the Rupee falls, gold becomes costlier).
Import tax and GST (we import gold, and taxes make it more expensive here).
Gold Prices in India Today (May 1, 2025)
Here’s what gold is selling for right now:
24 Carat Gold (purest): ₹9,573 per gram
22 Carat Gold (used in jewelry): ₹8,775 per gram
18 Carat Gold (less pure, cheaper): ₹7,180 per gram
Gold prices change daily — like how petrol prices change — based on the world market.
Why Does Gold Price Change?
Gold is kinda like a safety net. When the world seems risky, people invest in gold to keep their money safe.
Here are some reasons gold prices go up or down:
Inflation: When everything gets expensive, gold keeps its value.
War or Crisis: If countries are fighting or things are unstable, people rush to gold.
Interest Rates: If banks give less interest on savings, people move to gold.
Dollar Value: A weak dollar makes gold prices rise globally.
How Can You Invest in Gold?
You don’t always have to buy physical gold (like chains or coins). There are other smart ways:
- Physical Gold: Jewelry, coins, bars. You can see it and hold it, but storing it safely is a hassle.
- Gold ETFs or Gold Funds: Like investing in gold online. You don’t get the gold physically, but your money grows with the price.
- Sovereign Gold Bonds (SGBs): Government schemes where you earn interest + value goes up with gold price.
- Gold Futures/Options: These are more advanced trading tools — think of them like gold stock bets.
Quick Example
Let’s say today you buy 1 gram of 24 carat gold for ₹9,573. If gold prices go up to ₹10,000 next month, you made a profit of ₹427 per gram. But if prices fall, you lose money.
That’s why people keep an eye on global news, the dollar, and inflation when investing in gold.