Positive global trend led to the surge in the gold prices, analysts said.
Gold prices were last seen at Rs 38,540 per 10 grams in the national capital on Wednesday, according to industry body India Bullion and Jewellers’ Association (IBJA). These rates are exclusive of a 3 per cent Goods and services Tax (GST) and making charges, IBJA mentioned on its website. IBJA is a Mumbai-based association consisting of gold dealers, traders and jewellers. Positive global trend led to the surge in the gold prices, analysts said.
Here are 10 things to know about gold prices:
Gold prices rose to a near one-month high on Wednesday. Spot gold were last seen 0.3 per cent up at $1,482.02 per ounce, its highest since November 7, while US gold futures were up 0.2 per cent to $1,487.90.
“Gold prices witnessed buying after US President (Donald Trump) said that the trade deal with China may take place after November 2020 elections which fuelled buying in safe haven over economic recovery concerns,” HDFC Securities Senior Analyst (Commodities) Tapan Patel
Donald Trump’s comments come shortly after he slapped tariffs on US steel and aluminium imports from Brazil and Argentina.
Gold, which is seen as safe investment during times of political and economic stress, has gained about 15 per cent so far this year, mainly due to the 17-month long trade dispute and its impact on the global economy.
In India, gold imports in November jumped 78 per cent from a month earlier to the highest level in five months as jewellers in the world’s second-biggest market for the metal restocked after a fall in prices, according to a government source.
India fills nearly all of its gold demand through imports.
India imported 71 tonnes of gold in November, compared with 40 tonnes in October, the government source said.
Imports were down 16 per cent from November 2018, he said.
In November, local gold futures fell to Rs 37,477 ($522.18) per 10 grams after hitting an all-time high of Rs 39,885 in September.
In India, gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said in November, as domestic prices climb to a record against the backdrop of falling earnings in rural areas.
Source: NDTV Profit