Gold fell by Rs 24 in bullion market
On Monday, gold fell by Rs 24 to Rs 52,465 per ten grams in the local bullion market as the rupee strengthened against the US dollar. HDFC Securities has given this information. Gold had closed at Rs 52,489 per ten gram in the previous trading day. HDFC Securities Senior Analyst (Consumer Commodities) Tapan Patel said, “The 24-carat spot gold price in Delhi was marginally down by Rs. 24 due to the strengthening of the rupee.” Gold rose to $ 1,945.5 an ounce in the international market. Patel said that gold was traded in a narrow range due to rising concerns over economic growth amid a weakening of the dollar amid a mixed trend from global markets and a rising case of corona virus. He said that investors are awaiting new signals from the upcoming meeting of the Open Market Committee of the US Federal Reserve.
Gold became cheaper by about Rs 4800
On August 7 last month, gold touched its highest level in the futures market and the price per 10 grams rose to Rs 56,200. Since then, gold prices have fallen by about Rs 4800. That is, gold has fallen by about 8-9% in these days. Although this is a good time to buy gold, but despite giving huge discounts due to low demand in bullion market, people are not getting attracted to gold as before.
Discount up to Rs 780 per 10 grams
On Friday, gold closed at the level of Rs 51,445 per 10 grams in the bullion market, while gold had touched its all-time high of 56,191 last month. In such a situation, due to falling demand, gold dealers are giving a discount of up to $ 30 per ounce, which is about Rs 2200 per ounce. In this way, a discount of up to Rs 780 is being given per 10 grams. Last week, a discount of up to $ 40 an ounce was being given on gold.
This time there will be less demand during festive season
Generally, the demand for gold increases considerably during October – November. The reason for this is the arrival of the festive season. Gold always shines close to Diwali, but due to Corona this time people are facing financial crisis, which has a direct impact on the demand for gold. A Mumbai Gold Dealer has said that this time the prices are expected to remain low even during the festive season, as the prices have increased significantly.
Gold became a boon during the Corona era
Gold is an asset in deep crisis, this assumption is once again being proved right in the current difficult global conditions. Between the Kovid-19 epidemic and the geopolitical crisis, gold is again setting a record and has proved to be a better investment option for investors than other assets. Analysts believe that gold will remain high for at least one-and-a-half years amid fluctuations. Vimal Goyal, president of the Delhi Bullion and Jewelers Welfare Association, believes that gold will remain at a high level for at least a year. He says that gold is a ‘boon’ for investors at this time of crisis. Goyal believes that around Diwali, gold can rise by 10 to 15 percent.
The glow of gold has always increased in times of trouble!
Gold has always shone brightly in times of trouble. In 1979, many wars took place and gold had jumped about 120 percent that year. Most recently, in 2014, even though the threat of America was looming over Syria, the price of gold had started touching the sky. However, later it returned to its old standard. Gold prices rose even when US tensions with Iran increased or when there was a Sino-US trade war.
Gold imports down by 81 percent
The country’s gold imports declined by 81.22 percent to $ 2.47 billion or Rs 18,590 crore in the April-July period of the current financial year. Gold imports affect the country’s current account deficit (CAD). According to data from the Ministry of Commerce, the demand for gold has come down considerably in the midst of the Kovid-16 epidemic, which has reduced imports. In the same period last fiscal year 2019-20, gold imports stood at $ 13.16 billion or Rs 91,440 crore. Similarly, silver imports also fell by 56.5 percent to $ 68.53 million or Rs 5,185 crore in the first four months of the current financial year. The reduction in gold and silver imports has helped in reducing the country’s trade deficit.