Most prices of gold are approximations at a point of time and are subject to constant change. Globally spot gold is measured in terms of $/troy ounce (oz) and is expressed as $1258.88/oz. This global spot price forms the basis on which the domestic price of gold is set on a daily basis. Let us see how exactly this conversion works.

1 Troy Ounce (oz) = 31.1035 grams of gold

Hence we can also say that the global spot price of gold is $1258.88 per 31.1035 grams of gold

This dollar price of gold can now be converted into INR at the current exchange rate of Rs.66/$...

Thus the price of 31.1035 grams of gold can also be expressed as Rs.83,086.08.

For the sake of gold futures trading, the unit of measurement is the rate per 10 grams.

Hence the price can also be expressed as Rs.26,713/10 grams

Now this forms the basis for pricing the gold in India. In addition, there is import duty on gold plus GST that is payable. Then, other levies, cess, bank charges and insurance costs will be added up to arrive at the spot price in India in rupee terms. This figure will also depend on the domestic demand and supply of gold and the seasonal fluctuations. To that if you add the cost of carry, you will get the futures price on which you get to trade gold futures on the commodity exchanges.

Current price of gold and future price of gold