Gold rate today: Gold prices eased slightly on Thursday after the US Federal Reserve announced a 25 basis point rate cut, which was largely expected.
Traders stayed cautious as the Fed signaled a guarded outlook on further cuts in 2025.
Although gold slipped from its all-time high due to a hawkish tone and profit booking, it soon recovered.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, expects volatility in gold prices to stay high, with profit booking at higher levels and strong buying on dips.
He sees the range at ₹1,07,500–₹1,11,000 on MCX and $3,633–$3,670 on Comex.
Prathamesh Mallya, DVP Research – Non Agri Commodities and Currencies at Angel One, added that during geopolitical uncertainty, gold captures the safe-haven demand and risk premium.
He stressed that the choice between physical gold, ETFs, and SGBs depends largely on investor needs rather than gold’s price movement itself.
Different forms of gold investment
Physical Gold:
Investors buy gold in bars, coins, or jewelry. The key attraction is the tangible nature of the asset. However, buyers need to pay Goods and Services Tax (GST) and storage costs.
Gold ETFs (Exchange-Traded Funds):
A digital, liquid way of owning gold in small amounts. ETFs track gold prices in both domestic and global markets and can be easily traded on stock exchanges.
Investors must consider expense ratios, which slightly reduce returns.
Sovereign Gold Bonds (SGBs):
Issued by the government, SGBs offer capital appreciation along with 2.5% annual interest (paid semi-annually).
If held until maturity, gains are exempt from tax, making them attractive for long-term investors.
Tax implications
Sovereign Gold Bonds (SGBs):
Gains on redemption at maturity are completely tax-free.
If redeemed after 5 years but before maturity, gains are treated as long-term capital gains (LTCG), taxed at 20% with indexation, plus surcharge and 4% cess.
Physical Gold:
Selling within 36 months leads to short-term capital gains (STCG), added to annual income and taxed as per slab rates.
Selling after 36 months makes it LTCG, taxed at 20% with indexation, surcharge, and cess.
GST is also applicable at the time of purchase.
Gold ETFs:
Tax treatment is identical to physical gold (STCG if sold before 36 months, LTCG after).
Expense ratios slightly impact investor returns.
Final verdict
According to Angel One, SGBs are the most beneficial due to tax exemptions and interest income, provided investors can hold them until maturity.
However, other experts point out that the choice depends on an investor’s risk profile and investment horizon:
ETFs offer high liquidity and easy trading.
MCX gold derivatives allow short- to medium-term participation in price movements.
Physical gold appeals to those who want tangible assets despite higher costs.
SGBs, while attractive, currently lack new tranches. Only secondary market options are available, which may limit liquidity and increase risk.
