Gold Today Rate, December 24: Check 18, 22 and 24 carat gold prices Chennai, Mumbai, Delhi, Kolkata and other cities

While the specific article about daily gold rates for December 24 had "No content available," it provides an excellent springboard to delve into the profound significance of gold in the Indian economy and society. For competitive exam aspirants, understanding daily price fluctuations is less critical than grasping the broader economic, cultural, and policy dimensions of gold.

**Background Context: India's Enduring Love Affair with Gold**

India's relationship with gold is centuries old, deeply interwoven with its culture, traditions, and economy. Gold is not merely a commodity; it's a symbol of wealth, status, security, and auspiciousness. From ancient times, it has been a preferred store of value, especially in rural areas where access to formal financial instruments is limited. It serves as a hedge against inflation, a primary form of savings, and a crucial component of dowries and gifts during weddings and festivals. India is one of the world's largest consumers and importers of gold, a trend that significantly impacts its macroeconomic indicators.

**What Influences Gold Prices and Why it Matters**

Gold prices are influenced by a complex interplay of global and domestic factors. Globally, key drivers include demand-supply dynamics, the strength of the US Dollar (as gold is priced in USD), interest rates (higher rates make non-yielding assets like gold less attractive), geopolitical stability (gold is a safe-haven asset during crises), and central bank purchases. Domestically, factors such as import duties, festival and wedding seasons, monsoons (affecting rural income and thus demand), and government policies play a crucial role. When global prices rise or the Indian Rupee depreciates against the USD, gold becomes more expensive in India.

**Key Stakeholders in India's Gold Ecosystem**

Several stakeholders are involved in the intricate gold market:

1. **Indian Households/Consumers:** The largest stakeholders, driven by cultural practices, investment, and security needs.

2. **Government of India:** Plays a regulatory and revenue-generating role through import duties (levied under the **Customs Act, 1962**) and Goods and Services Tax (GST) on gold (under the **Central Goods and Services Tax Act, 2017**). It also formulates policies to manage gold demand and mobilize idle gold.

3. **Reserve Bank of India (RBI):** Manages foreign exchange reserves, which are impacted by gold imports. It also issues financial instruments like Sovereign Gold Bonds (SGBs).

4. **Jewellery Industry:** Comprising manufacturers, wholesalers, and retailers, this sector is a significant employer and economic contributor.

5. **Bureau of Indian Standards (BIS):** Responsible for hallmarking gold jewellery for purity, ensuring consumer trust and preventing fraud, as mandated by the **BIS Act, 2016**.

6. **International Markets:** Global exchanges like the London Bullion Market Association (LBMA) and COMEX set international benchmarks that influence domestic prices.

**Significance for India: Economic, Social, and Policy Dimensions**

Gold's significance for India spans multiple dimensions:

* **Current Account Deficit (CAD):** India's heavy reliance on gold imports (often exceeding 800-900 tonnes annually) is a major contributor to its CAD, putting pressure on the Rupee and foreign exchange reserves. This is a critical macroeconomic concern.

* **Inflation Hedge and Savings:** For millions, gold remains a primary hedge against inflation and a crucial component of household savings, particularly in the informal economy.

* **Black Money and Smuggling:** The high value and ease of portability of gold have historically made it a conduit for unaccounted wealth and smuggling, prompting government interventions like the **Prevention of Money Laundering Act (PMLA), 2002**, and efforts to formalize transactions.

* **Government Policies:** To address the economic challenges posed by gold imports and mobilize idle household gold, the Indian government launched schemes like the **Gold Monetization Scheme (GMS)** and **Sovereign Gold Bond (SGB) Scheme** in 2015. These aim to reduce physical demand, provide an alternative investment avenue, and channel gold into productive use. The **Foreign Exchange Management Act (FEMA), 1999**, also governs aspects of gold trade and foreign exchange.

**Historical Context and Future Implications**

India has a history of government interventions in the gold market, most notably the **Gold Control Act, 1968**, which restricted private ownership of gold. This act, however, proved largely ineffective and was repealed in 1990, leading to a liberalization of gold imports. The current policy thrust, exemplified by GMS and SGBs, is towards financialization of gold, encouraging investors to shift from physical gold to paper gold or deposit their idle gold with banks. This helps reduce import dependence and brings gold into the formal financial system. In the future, the increasing adoption of digital gold platforms and continued government efforts to formalize the economy will likely reshape India's gold market, potentially reducing its impact on the CAD and integrating it further into the mainstream financial system. The constitutional power to levy customs duties on imports, including gold, falls under **Article 246** (Seventh Schedule, Union List, Entry 83), underscoring the Union's authority in this domain. Furthermore, **Article 265** dictates that no tax shall be levied or collected except by authority of law, reinforcing the legal basis for these duties.