Gold Rate Falls on November 12: 24K Drops Rs 2,620, Gold Loan Values Dip

Gold got cheaper today. According to reporting by HDFC Sky, 24K gold fell by Rs 2,620 to about Rs 1.42 lakh.

For you, this means two things. A new gold loan may be a little smaller than it would have been yesterday. And if you plan to buy gold, today's price is a bit lower.

Key takeaways

• 24K gold dropped Rs 2,620 to roughly Rs 1.42 lakh, as reported by HDFC Sky.
• Rates like this are usually quoted for 10 grams of gold.
• A lower gold price means a slightly lower loan amount on the same jewellery.
• Existing borrowers should check how close they are to their loan limit.
• One day's fall is not a trend, so avoid hasty decisions.

How the gold rate fall works

Gold prices change through the day. They follow global rates, the dollar and demand in India. When the price falls, every gram you own is worth a bit less.

The headline talks about 24K gold. That's the purest form, about 99.9% gold. Jewellery is mostly 22K, which is around 91.7% pure. So jewellery moves in the same direction, but its value per gram is lower.

The report doesn't tell us why the price fell. So we won't guess. You can see the latest price any time on our daily gold price page.

What the fall means for your gold loan

A gold loan is a loan you take by keeping your gold with a lender. The lender gives you money based on your gold's value. The share they lend is called LTV, or loan-to-value. RBI sets the upper limits, and lenders usually offer around 75% for larger loans.

Here's a simple example. Say 24K was about Rs 1,44,620 per 10 grams before the fall. That's roughly Rs 14,462 per gram. After the fall, it's Rs 14,200 per gram.

Now take 50 grams of 22K jewellery. Its value falls by about Rs 12,000. At 75% LTV, your loan eligibility falls by about Rs 9,000.

Item	Before the fall	After the fall
24K gold, per 10 grams	Rs 1,44,620	Rs 1,42,000
24K gold, per gram	Rs 14,462	Rs 14,200
50 g of 22K jewellery, value	About Rs 6.63 lakh	About Rs 6.51 lakh
Loan at 75% LTV	About Rs 4.97 lakh	About Rs 4.88 lakh

The "before" figures are worked out from the reported fall. Your lender's real numbers may differ. Check today's per-gram gold loan values for a closer idea.

Who is affected

New gold loan borrowers. You may get a little less cash for the same jewellery. The gap is small on one day's move.

Existing borrowers. If you took a loan close to the maximum, your cushion is thinner. A bigger fall could lead the lender to ask for more gold or a part payment.

Gold buyers. A lower price helps you. But don't expect it to last, since prices can rise again.

Gold owners who don't borrow. Your gold is worth a little less on paper. Nothing changes unless you sell.

What to do now

You don't need to act in a panic. Here's a short checklist:

1. Note your loan amount and the weight and purity of your pledged gold.
2. Check today's gold price and work out the current value.
3. Compare your loan with 75% of that value.
4. If you're close to the limit, ask your lender what happens on a further fall.
5. Keep some savings ready for a small part payment.

Before you borrow, compare costs too. Interest rate, fees and repayment rules matter as much as the loan amount. Read our gold loan guide to see how lenders differ. If you want to see monthly payments, try the EMI calculator.

Frequently asked questions

Why did 24K gold fall to Rs 1.42 lakh?

HDFC Sky reported the fall of Rs 2,620 but our source headline doesn't give the reason. Gold usually moves with global prices, the dollar and local demand.

Will my gold loan amount drop because of this?

Your existing loan stays the same. A new loan on the same gold may be a little smaller. If the price keeps falling, a lender may ask for a top-up or part payment.

Is today a good day to buy gold?

The price is lower than before, so it's a better entry than yesterday. But nobody can say where it goes next. If you must buy, consider buying in small parts.