Millennium Post

Gold rebounds by Rs 240 to Rs 25,920 per 10 gm on bullish global sentiment

Gold prices are slowly strengthening, with the yellow metal becoming costlier by Rs 240 per 10 grams to Rs 25,920 on Thursday from Wednesday's Rs 25,680. 'We expect gold prices to stabilise in the next few days. After this there might be a pick-up in imports,' said Bombay Bullion Association (BBA) President Mohit Kamboj.

'There is very good demand and the footfall has increased multi-fold following the weakness in gold prices. The demand will be supported by the wedding season, which is extended till July unlike last year.... We expect up to 20 per cent rise in demand to around 183.6 tonne in the April-June quarter,' said Kamboj.

Gold imports stood at 153 tonne during April-June 2012, according to World Gold Council (WGC) data. However, Kamboj said that imports this month might be 25 per cent lower at around 53.25 tonne than April 2012 as 'gold prices are yet to become steady'.

'When the prices drop, traders hold back in anticipation of further decline while they buy when prices rise with the fear of additional increase in rates,' he explained. In April 2012 India had imported about 71 tonnes of gold. India imported about 250 tonnes in the January-March period of this year amid decline in international prices and rise in demand. The country had imported 207 tonnes of gold in the same period of last year. India's gold imports had dipped by 12 per cent in 2012 to 864.2 tonnes compared to 986.3 tonnes in 2011, mainly on account of the jewellers' strike over certain budgetary measures and sharp rise in domestic price, according to the World Gold Council Demand Trends Report.


Gold prices in the international market on Thursday gained for the third day as the near lowest rates in more than two years attracted buyers. The gold climbed 0.8 per cent to $1,387.23 an ounce.

On April 16 prices had fallen to $1,321.95, the lowest since January 2011. Silver too gained 0.4 per cent to $23.42 dollar an ounce. Retail sales tripled across China on April 15, the China Gold Association said.The US Federal Reserve, which buys $85 billion of securities a month to support the economic recovery, said in a survey that the US expansion remained moderate.

Data this week showed slower-than-expected Chinese economic growth and European car sales slid to a 20-year low. Prices also tumbled on concern that Cyprus may lead other European states in selling gold from their reserves, according to Goldman Sachs Group. Holdings in bullion-backed exchange-traded products lost 3.5 per cent to 2,364.9 tonnes this month. Holdings in the SPDR Gold Trust, the biggest ETP backed by gold, are 1,134.79 tonnes, the lowest level since April 2010. (Bloormerg)


The Union Government on Thursday further slashed the tariff value of gold and silver to $ 449 per 10 grams and $ 762 per kg, respectively, in view of falling global prices of the precious metals. Tariff value is the base price on which the customs duty is determined to prevent underinvoicing.

It was only two days back that the tariff value was brought down to $499 per ten grams and silver at $890 per kg.

The notification in this regard was issued by the Central Board of Excise and Customs (CBEC), an official release said.

The government has reduced the import tariff value of precious metals following high price volatility in gold and silver in the global market.

Gold prices are ruling down at $1337.86 per ounce in Singapore. In the national capital, gold rates have fallen sharply in the last few trading sessions and are currently ruling down at Rs 26,600 per ten gram. Silver is ruling at Rs 45,400 per kg.

Decline in bullion prices has boosted domestic demand in the country, the world’s largest gold consuming nation.


The BSE benchmark Sensex on Thursday regained 19,000 level after two weeks by climbing almost 300 points led by smart gains in HDFC, ICICI Bank, L&T and on rate-cut hopes amid government announcing measures to boost exports in foreign trade policy. The Sensex surged by 285.30 points, or 1.52 per cent, to close at 19,016.46, a level last seen on 2 April.

The National Stock Exchange index rose by 94.40 points, or 1.66 per cent, to 5,783.10 led by stocks of consumer durable, capital goods and banking sectors.
Next Story
Share it