Gold prices
Why local gold prices differ from the global spot price
Understand the gap between XAUUSD and retail gold per gram, including currency, purity, fabrication, tax and dealer margin.
Answer first
What should you remember?
- XAUUSD prices a troy ounce in USD, not finished local jewelry.
- Currency moves can lift local gold even while spot is unchanged.
- Compare the pure metal value before fabrication when evaluating retail quotes.
What the global quote represents
XAUUSD quotes one troy ounce of spot gold in US dollars. A troy ounce equals 31.1034768 grams. It is a raw-metal benchmark and does not include fabrication, sales tax or retailer margin.
Local currency and purity
To estimate a local gram, divide the ounce quote by 31.1034768, convert at the relevant FX rate and multiply by purity. Twenty-four karat is near pure gold, while 21K and 18K contain lower gold proportions.
Fabrication, tax and margin
Retail products add design, manufacturing, transport, insurance, dealer margin and applicable taxes. Costs vary by product, seller and country, so a bar and a designed jewelry piece should not be compared as identical products.
How to compare quotes fairly
Ask for weight, purity, underlying metal value, fabrication and tax as separate figures, then consider resale terms. The lowest sticker price is not automatically best when purity, certification or buyback conditions differ.
Direct answers
Frequently asked questions
Can gold per gram be calculated from XAUUSD?
Yes for raw metal: divide the ounce quote by 31.1034768, then apply FX and purity. Add fabrication and taxes for a retail estimate.
Why can local gold rise while spot is flat?
The local currency may weaken or local supply, demand and costs may change, lifting retail price without an equal XAUUSD move.