New Delhi: The festive season (Festive Season 2024) will start from the month of October. With this beginning, there can be a boom in the purchase of gold. Whenever we go to buy jewellery, we definitely ask the shopkeeper about the price of gold. In such a situation, we must have often seen that there is a slight change in the price of gold every day. There may be a difference of Rs 200 in the price of today and tomorrow.

In such a situation, the question arises in the mind that why does the price of gold fluctuate and who decides its price. We will answer such questions in this article.

How is the price of gold decided

The price of gold available in which city of the country depends on the price at which the jewellers are buying gold. The price at which the jewellers buy gold is called the spot rate. Now the spot price is decided on the basis of the price at which gold is trading on the Multi Commodity Exchange (MCX).

How is the price of gold decided on MCX

Now the question arises that how is the price of gold decided on MCX. There are many factors behind deciding the price of gold on MCX. The price of gold and other metals is decided keeping in mind the gold demand in the Indian markets, supply figures and inflation in the global market.

Before deciding the price of gold on MCX, coordination is done with the London-based Bullion Market Association. Only after this the gold price is decided. However, the gold price shown on MCX also includes VAT, levy and cost.

What are the things that affect the price of gold?

Many factors affect the fluctuations in gold prices. The most important among these are economic and political decisions. Yes, if any major decision or event takes place globally, it affects gold. For example, during the war between Russia and Ukraine, there was a tremendous rise in the prices of gold.

How are gold prices decided in India and the world

If we talk about the price of gold, you must have often heard that gold is cheaper in Dubai. In such a situation, the question is on what basis the price of gold is decided in India or other countries. The answer to this is that the world's largest bullion market decides the price of gold.

Before 2015, the price of gold was decided only in London, but from March 2015, a new unit of Bullion Market Association was formed in London. This unit is operated by ICE Administrative Benchmark. This organization decides the spot price of gold in collaboration with the organizations of all the countries.

What is the spot price of gold

The price at which gold jewelers buy gold is called spot price. It is decided by the members of bullion associations of many cities of India. The spot price of gold is decided as soon as the market opens. Bullion traders of every city decide the price, due to which their prices are different in all cities. Apart from this, their prices also change due to gold carat.