Gold at Record Rs 1.3 Lakh per 10g Ahead of Dhanteras; Here’s What You’ll Pay with GST

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Ahead of the Dhanteras festival, 24-karat gold has reached a record high of Rs 1.3 lakh per 10 grams, a 65% year-on-year surge. For Indian buyers, the final price is higher due to a 3% GST and additional making charges.

As India heads into the Dhanteras and Diwali season, the glitter of gold has never been more expensive. The price of 24-karat gold has hit an all-time high of Rs 1.3 lakh per 10 grams in global trade — marking a 65% surge year-on-year from Rs 78,610 during last year’s Dhanteras. What’s more, nearly 58% of this rally unfolded in just the first ten months of 2025.

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For Indian buyers, the celebrations could come with a hefty price tag — not just from the base rate, but also due to the 3% Goods and Services Tax (GST) levied on all gold purchases.

That means a 10-gram purchase of 24K gold priced at Rs 1.3 lakh would actually cost Rs 1,33,900 after GST. Add to that making charges (typically 7–10%) and the final bill could easily cross Rs 1.42 lakh in many jewellery stores.

Jewellers Stay Hopeful Despite Price Shock

While prices have skyrocketed, jewellers across major Indian cities say footfall hasn’t slowed as much as expected. They credit strong household liquidity, government GST reforms, and salary arrears from the latest Pay Commission as key factors keeping festive spending alive.

“Overall demand is high as everyone is still a buyer — just a more cautious one,” said Manav Modi, Analyst – Precious Metals, Motilal Oswal. “The rally in gold looks very strong and convincing for a bull run as fundamentals remain intact, despite prices rising about 60% in the first ten months of 2025.”

Jewellers are now rolling out rate guarantees, free coins, and festival-specific exchange offers to ease buyer hesitation. However, experts warn that hidden charges — such as inflated making fees or reduced buyback values — can significantly affect the effective purchase price.

How Buyers Are Adapting

With prices near record highs, customers are adopting creative ways to stay within budget. Many are:

  • Exchanging old gold to offset new purchases
  • Choosing lightweight or lower-karat jewellery (14K–18K)
  • Splitting payments through EMI or cashback offers on credit cards
  • Investing in digital gold or sovereign gold bonds for long-term exposure

Younger buyers, in particular, are also using credit card rewards, digital wallets, and cashback schemes to partially fund their purchases — a trend that’s gaining ground in urban markets.

Gold Prices Across Major Indian Cities (per gram)

City – 22K Gold – 24K Gold

  1. Delhi – Rs 11,880 – Rs 12,959
  2. Chennai – Rs 11,900 – Rs 12,982
  3. Bengaluru – Rs 11,865 – Rs 12,944
  4. Mumbai – Rs 11,865 – Rs 12,944
  5. Pune – Rs 11,865 – Rs 12,944
  6. Kolkata – Rs 11,865 – Rs 12,944
  7. Ahmedabad – Rs 11,870 – Rs 12,949
  8. Hyderabad – Rs 11,865 – Rs 12,944
  9. Indore – Rs 11,870 – Rs 12,949
  10. Lucknow – Rs 11,880 – Rs 12,959

Note: Prices vary by jeweller, location, and purity. Always confirm making charges and final GST-inclusive rates before purchase.

Experts Advise Caution

Even as global investors shift towards gold as a safe-haven asset amid geopolitical tensions and inflation fears, analysts urge caution. Gold has a history of sharp corrections — in 2021, it delivered negative returns of 4.3%.

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