Understanding the difference between MCX gold price and local market gold rate is essential for correct pricing, profit planning, and risk control in the jewellery business.
For many goldsmiths and bullion traders, one common question is: “Why is the MCX gold price different from the local market gold rate?”
MCX and local market rates serve different purposes, but both are equally important in daily gold trading.
1. What is MCX Gold Price?
MCX (Multi Commodity Exchange) gold price is a wholesale benchmark price. It represents the futures market value of gold and is mainly used by bullion dealers, traders, and large buyers to understand the real market direction.
Key points:
- It reflects international gold prices
- It reacts instantly to global news
- It is used as a reference by bullion dealers
- It does not include taxes or charges
MCX price tells you:
“What is the pure market value of gold right now?”
2. What is Local Market Gold Rate?
Local gold rate is the final physical gold price at which gold is bought and sold in your city or market. It is the price that customers actually pay at jewellery shops.
It includes:
- MCX base price
- Import duty
- GST
- Transportation cost
- Dealer margin
- Making charges
3. Key Differences Between MCX and Local Gold Rate
| Factor | MCX Price | Local Market Rate |
|---|---|---|
| Type | Futures market price | Physical gold price |
| Includes GST | No | Yes |
| Includes Making Charges | No | Yes |
| Nature | Wholesale reference | Retail selling price |
| Price Change | Every second | Usually daily |
| Used By | Traders, bullion dealers | Goldsmiths, jewellers |
4. Why Is There Always a Price Difference?
1. Taxes and Duties
Local price includes import duty and GST, while MCX price does not.
2. Logistics Cost
Transport, storage, and insurance costs are added locally.
3. Market Demand
High demand in your area increases local prices.
4. Dealer Margin
Every seller adds their profit margin.
5. Purity Adjustment
MCX shows price for 24K gold, while most jewellery is 22K or 18K.
5. Practical Example
MCX Gold Price = ₹62,000 / 10g
Local calculation:
- Base: ₹62,000
- Import duty + handling: ₹1,000
- GST (3%): ₹1,860
- Dealer margin: ₹1,000
Final local rate ≈ ₹65,860 per 10g
6. Which Price Should Gold Traders Trust?
Both prices are important, but for different purposes.
Use MCX price to:
- Track market trend
- For wholesale buying
- For risk management
- For price forecasting
Use Local rate to:
- For retail selling
- Customer billing
- Jewellery pricing
7. Common Mistakes Traders Make
- Treating MCX as final selling price
- Ignoring GST and charges
- Not watching local demand
- Confusing purity levels
8. How Goldsmiths Can Use Both Smartly
- Check MCX price every morning
- Compare with bullion dealer rate
- Adjust for purity and taxes
- Fix daily shop price
- Monitor trend for buying decisions
9. Final Thought
MCX is your market compass.
Local rate is your business price.
A smart gold trader understands both and uses the difference to protect profit, avoid losses, and build a stable jewellery business.
10. FAQs
Q1. Why is MCX gold price lower than local market rate?
Because MCX price does not include GST, import duty, or dealer margin.
Q2. Can I sell jewellery at MCX price?
No. MCX is a reference price. Local market price must be used for selling.
Q3. Which price should customers see?
Customers should always see the local market gold rate.
Q4. Why does local gold price change daily?
It changes based on MCX movement, taxes, demand, and dealer pricing.
Q5. Is MCX useful for small goldsmiths?
Yes. It helps track trend and plan buying at the right time.
Author: GS24Live Market Desk
Last Updated: 17 January 2026
Keywords: MCX vs local gold rate, gold price difference, goldsmith pricing, gold rate calculation, bullion market India