Kolkata | January 2026:
Malabar Group Chairman M.P. Ahammad has cautioned that certain emerging practices in gold price determination in India are deviating from long-established norms, posing a risk to the credibility and transparency of the country’s gold trade.
Highlighting the fundamentals of gold pricing, Mr. Ahammad said that gold prices in India are traditionally determined by three key factors—international gold prices, the exchange rate of the Indian rupee against the US dollar, and applicable import duties. While customs duty remains fixed for a defined period, fluctuations in global prices and currency movements necessitate daily price revisions.
“Traditionally, gold prices are set in a transparent and reliable manner by trade associations and are published before 9:30 am. Once fixed for the day, prices are revised only under exceptional circumstances of extreme market volatility,” he noted.
Expressing concern over recent trends, Mr. Ahammad pointed out that in certain instances, a section of traders has been increasing gold prices arbitrarily during the day, contrary to the established pricing mechanism, and without offering clear justification to consumers.
“Such practices can seriously undermine trust in the gold trade and create uncertainty among consumers, investors, and other stakeholders. It is imperative that all participants refrain from actions that compromise the integrity and credibility of the industry,” he cautioned.
Reiterating Malabar Gold & Diamonds’ commitment to consumer interest, Mr. Ahammad emphasized that transparency, fairness, and ethical business practices remain central to the company’s operations. He also highlighted Malabar’s pioneering ‘One India One Gold Rate’ initiative, aimed at eliminating price disparities across states.
“Since tax rates are uniform nationwide and gold prices are linked to international benchmarks, there is no rationale for varying gold prices across different states. Gold should be sold at a uniform rate across the country,” he said.
Malabar Gold & Diamonds continues to advocate for standardized, transparent pricing practices that strengthen consumer confidence and uphold the legacy of India’s gold trade.
