By Admin 
- Import duties, taxes, currency exchange rates, and demand-supply determine prices.
- International price is fixed in dollars, local currency price varies.
- Gold prices rise in India due to higher import duties and taxes.
- Transportation, insurance, and logistics expenses also add to the price difference.
Why Gold Prices Differ Globally: While buying gold, many times you must have wondered why its prices are so different in different countries at the same time. In some countries, gold is cheap and in some countries it is very expensive, but there are many important things behind this difference, which is very important for everyone to know.
If we talk about the reasons behind this, then its main reasons are import duty, tax, currency exchange rate and local demand-supply. However, the international price of gold is fixed in dollars and the prices change when it is converted into local currency.
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Impact of import duty and tax
Let us tell you that the biggest reason for the increase in the price of gold is import duty and taxes. Talking about India, about 10 percent import duty and 3 percent tax is imposed on gold, which increases its price, whereas in countries like Dubai, the tax is very low or non-existent, due to which gold is cheaper there.
Effect of currency exchange rate
The price of gold is fixed in dollars in the international market. When the local currency weakens against the dollar, gold becomes expensive in that country.
difference between demand and supply
Along with this, in a country where the demand for gold is high, like India, the prices are often high. If it is less then it may be comparatively less in those countries.
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Transportation and other expenses
This is also the biggest reason for the price difference. Transportation, insurance and logistics expenses are also added to the price of gold, due to which its price changes in different countries. Due to all these differences, the price of gold varies in different countries.