Gold Price History in India

Gold, a bright yellow metal, holds immense importance in Indian culture. Whether you want to gift someone or invest in your future, this metal is an ideal choice. If you are planning to invest in gold, you need to understand the impact of recessions, shifts in demand and supply, etc. on the price of this metal.

Keep reading to know the gold rate history in India, its significance, the best gold investment options, and more!

Significance of Gold in Indian Culture

Gold, referred to as “Swarna” in ancient India, has been an integral part of our culture and heritage. It is considered a symbol of auspiciousness and good luck during religious occasions or marriages. Here are some of the crucial reasons why this yellow metal is significant in Indian culture:

• Religious Connection

Devotees donate a huge amount of gold jewellery to temple funds as a connotation to religious sentiments. Besides, people purchase gold ornaments on occasion as a symbol of auspiciousness.

• Family heirloom

In India, every family passes gold ornaments from one generation to the others as a legacy. Often elderly persons of a family pass on their jewellery to the brides of next generations. This helps keep their legacy alive and save money from buying jewellery at higher prices.

• Gift Purpose

Despite the fluctuations and ever-rising price of gold, Indians prefer gifting golden ornaments or coins during ceremonies like weddings, birthdays, etc. It is a generous gift idea as the recipient can use it in future. Besides, gold as a gift is a symbol of good luck.

Gold Rate History in India (table format)

Check out this table below to know the history of gold rate in India from 1964 to 2024:

Gold Rate History in India Last 5 Years

The last 5-year history of gold rate in India dates back to the pandemic era. 2020 was a great threat to the equity market with severe fluctuations in the gold rate. However, at the end of this year, its prices declined. After 2020, gold rates have increased gradually with multiple fluctuations.

If you look at the rise in its price from 2022 to 2023, you will notice an increase of approximately Rs.12, 000 which is more than 20%. Several factors led to the rise of this metal’s prices in India including an increase in the US Fed rate, the Russia-Ukraine war, etc.

Gold Rate Before Independence in India (Before 1947)

The pre-independence period had witnessed a higher price. Though gold was predominantly used as reserve money and currency at that time, there were minor fluctuations in its price.

Gold Rate After Independence in India (After 1947)

The post-independent period witnessed a higher fluctuation in the gold rates in India. The price of gold started rising due to the financial crisis of 1971 and the Indo-Chinese War of 1962. 

Why Is Gold Getting More Expensive?

Here are some of the factors that influence the gold prices in India:

• Exchange Rate

The US Dollar and Indian Rupee exchange rates have a great impact on the gold price in India. If the Rupee is stronger, it is likely to lower the price and vice versa.

• International Gold Rates

The fluctuation of international gold prices affects the gold rates in India. India’s business relationship with foreign countries plays a major role in this regard. Market sentiments, trade, investment flows, etc. factors influence the Indian market.

• Government Rules and Regulations

The government comes up with multiple policies that influence the demand and supply of gold, thereby affecting its price. Taxation, gold imports, customs duties, and trading regulations are some of the policies that influence the gold price.

• Interest Rates

If the interest rate is high, the demand for gold drops down, resulting in a decrease in its price. However, if the interest rates are low, investments in gold rise higher.

• Seasonal Demand

During the wedding and festive seasons, Indians buy huge amounts of gold. This increases the demand and price for the metal potentially. 

What are the Best Gold Investment Options in India?

You can invest in gold digitally through some popular platforms in India. These platforms are convenient and feasible in many ways. Check out some of the best gold investment options below:

• Sovereign Gold Bonds

The Government of India issues SGBs or Sovereign Gold Bonds to let individuals invest in gold without physical ownership. These bonds come in denominations of gold grams, and you can invest them for a fixed tenure and avail additional interest on the amount of gold invested. 

• Gold Savings Funds

These are mutual fund schemes through which you can invest in gold ETFs. You don’t need to buy or sell these ETFs directly to invest in gold savings funds, instead, you can invest through a mutual fund investment account.

• Gold ETFs (Exchange-Traded Funds)

You can trade gold ETFs, open-ended mutual fund schemes, on stock exchanges by investing in physical gold.  You can buy and sell a certain quantity of gold in the form of thi ETF through your demat account.

• Gold Trading Platforms

You can trade gold digitally like stock trading through some online platforms. These platforms will help investors buy and sell the yellow metal digitally in a marketplace while taking advantage of price fluctuations. Therefore, you can trade gold as a financial instrument through these platforms.   

Gold Rate Future Prediction

As per a survey, the gold prices in India may rise to a valuation of $2221 by December 2027 due to the fluctuations in US dollar. The chart below represents the future gold rate predictions for next 10 years: