A rigorous coupled-wave analysis for metallic surface-relief gratings is presented. This approach allows an arbitrary complex permittivity to be used for the material and thus avoids the infinite conductivity (perfect-conductor) approximation. Both TE and TM polarizations and arbitrary angles of incidence are treated. Diffraction characteristics for rectangular-groove gold gratings with equal groove and ridge widths are presented for free-space wavelengths of 0.5, 1.0 and 10.0 μm for all diffracted orders as a function of period, groove depth, polarization, and angle of incidence. Results include the following: (1) TM-polarization diffraction characteristics vary more rapidly than do those for TE polarization, (2) 95% first-order diffraction efficiency occurs for TM polarization at 10.0 μm, (3) <0.1% zero-order specular reflectivity occurs for both TE and TM polarizations, (4) >50% absorption of incident power occurs at 0.5 μm, and (5) the perfect-conductor approximation is not valid for TM polarization at any of the wavelengths and is not valid for TE polarization at 0.5 μm.