Today Gold Rate
16th Jan 2021
Today MCX gold price in rupees per 10 grams.
Today gold price in india is 52,510.00 rupees per 10 grams
(10 grams = 1 tola gold)
Gold Rate Today in India (in Rs/1 gm)
Last Update on 16th Jan 2021
|Gold Rate||Gold Rate In Bangalore||Gold Rate In Chennai||Gold Rate In Delhi||Gold Rate In Hyderabad||Gold Rate In Mumbai|
Price of Gold in Different Cities
Today Gold Price in India
In India, there is a sentimental value associated with gold. The yellow metal symbolizes prosperity and wealth. Gold jewellery is so dear to Indian women that they can’t enough of it. Since gold is an important part of auspicious celebrations, the sale of gold increases drastically around Diwali. Gold rate changes every day; if you want to buy gold, simply type today gold rate in google search box and conduct a Google search. Keeping up with the current gold rate is a must if you wish to hit the el dorado.
Gold ornaments are quite popular in our country. The shopping for Indian weddings is incomplete without gold. The best thing about gold is that it can be easily sold in case there is a financial crunch.
While gold fascinates Indian women, it attracts investors as well. For investment purposes, investors buy gold coins, gold bars, gold ETFs etc. Investment experts recommend not buying gold jewellery for investment purposes. It is because when gold jewellery is purchased; it attracts additional charges in the form of making charges.
Today gold price is affected by various factors such as demand and supply, market scenarios across the globe and the strength of US dollar etc. Additionally, the price of gold differs in various cities across India as well. Various factors such as taxes, demand, carriage, local associations etc. affect the gold price in different cities.
Today 22 & 24 Carat Gold Price Chart
22 & 24 Carat Gold Rate in India for Last 10 Days
|16 January 2021||Rs. 4814.00||Rs. 48140||Rs. 5251.00||Rs. 52510|
|15 January 2021||Rs. 4815.00||Rs. 48150||Rs. 5252.00||Rs. 52520|
|14 January 2021||Rs. 4835.00||Rs. 48350||Rs. 5275.00||Rs. 52750|
|13 January 2021||Rs. 4835.00||Rs. 48350||Rs. 5275.00||Rs. 52750|
|12 January 2021||Rs. 4835.00||Rs. 48350||Rs. 5275.00||Rs. 52750|
|11 January 2021||Rs. 4805.00||Rs. 48050||Rs. 5242.00||Rs. 52420|
|10 January 2021||Rs. 4846.00||Rs. 48460||Rs. 5286.00||Rs. 52860|
|09 January 2021||Rs. 4845.00||Rs. 48450||Rs. 5285.00||Rs. 52850|
|08 January 2021||Rs. 4965.00||Rs. 49650||Rs. 5416.00||Rs. 54160|
|07 January 2021||Rs. 4965.00||Rs. 49650||Rs. 5416.00||Rs. 54160|
Comparison of 22 K & 24 K Gold Rates in India
Historical Price of Gold Rate
The Glittering Gold of India
India's Inclination Towards Gold
India has a long standing affinity to gold. It is the metal of the gods, and gods of the metals! It is the indication of the long lasting and evergreen heritage of this traditional country. Anything made of gold is regarded infinitely precious and hence, commands respect.
The heavier the gold, the more prestigious the status is thought to be. Most of the women in India prefer gold to diamonds, and the gold market in India is always loaded with fresh and vivid designs. Also, in comparison to diamond, the current gold rate is lesser, and hence, more bought.
Buying Gold in India
Buying gold in India is pretty easy in the sense that you can find genuine gold jewellery shops almost everywhere. From large franchise to smaller shops, gold is everywhere. You can get the standard 22 carats gold, the intermediate 23 carats gold, as well as the pure 24 carats gold, in this golden country. However, before heading to the nearest jeweller’s, do search for Gold Rate Today or Today gold rate on Google for the latest price of gold.
What Do You Buy?
This is entirely your choice. Gold rings, earrings and necklaces, there is plethora of options available. From heavy and gorgeous ones to light and simple ones, you can buy anything made of gold, if you budget allows you to do so.
Common Factors that Determine Gold Prices in India
For ages, the Indian population has had a fascination for gold. It is the most cherished metal, and it is flaunted in the form of jewellery at every occasion. The gold rate today in India is not standard. The gold price oscillates based on fluctuations in the market.
There are several factors that influence the gold price today in India. The top most reason is the geo-political distress in and around the country. When the Presidential elections were held in the United States, the price of gold initially rallied sharply and then fell again. It was because the investors became aware of the fact that equity shares were performing better. Later on, it became crystal clear that the newly elected President's policies might be volatile, due to that, gold prices hiked again.
There are several factors that might continue to keep the current gold rates volatile this year.
Also, the performance of a currency is also a big determinant of the price of gold today. In this regard, the most important currency is the USD. If the USD climbs up, gold rates are likely to move down worldwide. A lot is at stake due to Indian currency as well. It specifically relates to gold rates in India. You should keep a tab on current gold rate in India. Domestically, when rupee is stronger, gold prices are lower.
Global Changes in Gold Prices
The price of gold in India is predominantly dependent on the global prices of the metal. Most of the gold in the Indian markets in imported. When there is a change in the global rate of gold, the import values are altered accordingly. The market price of gold in India is a direct reflection of the import prices.
The Gold Reserve Measure
Almost all nations have their central banks. These governing banks of major countries hold back the metal along with currencies for future use. The Reserve Bank does this too. When these banks all over the world acquire more gold for reservation, it leads to a rise in the rate of gold.
An Overall Demand
There are specific reasons for a rise in consumer demand for gold. In India, it is the wedding season or festivities. When the demand is more, there is an imbalance in the demand-supply ratio. This leads to a rise in the gold prices.
Apart from the above-mentioned reasons several other determinants influence the current gold rate in India. At any given point of time, the gold price today will also depend on the interest rates of certain financial services and products. No matter the price, the yellow metal has remained precious over the years and will continue that way irrespective of the oscillating prices.
How is Hallmarked Today Gold Rate Determined in India?
There isn’t any difference between hallmarked gold rate today and normal gold rate. Any gold seller doesn’t charge extra money if you buy hallmarked gold. The rate at which the hallmarked gold and the normal gold are sold is the same. The sole and most important difference is that you are ensured of purity when you buy hallmarked gold.
The important thing to keep in mind is that hallmarked gold price in India does not differ when it comes to the pricing. The difference lies in the quality of the metal used. When you buy gold, buy good quality gold. It is good to buy the hallmarked gold as it ensures the quality. Many investors have raised their opinions on the less number of hallmarking centres available in our country. This is an important issue that needs to be addressed by our government so that number of hallmarking centres can be increased. This will be of great help to the consumers across India.
How is the Per-Gram Today Gold Price in India Arrived at?
The gold price today in India is determined by the following factors:
Currency - When the rupee slips against the dollar, India gold rate rises up.
International Factors - These factors include slowdown of the global economic development, volatile policies, dollar becoming stronger against different currencies etc.
Global Demand for Gold - Global demand for gold plays a crucial role in determining the price of gold in India. In case the demand is robust, the prices would rise and vice-versa.
Interest Rates - The rate of interest is a crucial factor that affects the gold rates in India. When the rate of interest in countries such as America increases, current gold rate in India falls and when it falls, the gold rates increase.
Government Policies - There are times when the government discourages the purchase of gold. For instance- when the gold prices are high, the government discourages any investments in gold. It is done in order to make sure that there isn’t any problem with the deficit.
Prices - High price of gold discourage the consumption in our country. Off late, the price of gold in India has increased.
How is 22-Karat Gold Price in India Determined and Who Imports it?
Now, India doesn’t mine gold. Places such as Kolar in Karnataka once used to be gold mines and now are closed. India imports approximately all of its required gold requirements. The imported gold rate is used to determine the 22-karat gold rate in India. Gold importers, such as government banks, private banks, and many private companies etc. fix the wholesale gold prices in India.
When gold is imported in India, the importers add import duties, VAT etc., and then they sell it to the wholesalers, who retail it to the retailers across India. The price of gold is decided by the bullion association. Gold prices don’t change often during the day.
Impacts of QE on Gold Price Today in India
Quantitative easing is widely known as QE. It is another component that impacts gold rates in India. In quantitative easing, there is money supply in the economy for enhancing the consumption. Global central banks buy securities which lead to the extra money supply in the economy. This extra money supply finds a way into global gold investments, which pushes the prices of the metal higher.
An increase in the QE affects the gold rate today in India, which affects all the form of gold inclusive of the popular 916 gold rates in India. Off late, QE happening around the world is not that much. The US is done with its QE phase and there is some kind of easing happening in the countries such as Japan along with the Europe through the various central banks.
At present, it seems very unlikely there will be QE in that country. When the world economy will face any liquidity issues, gold rates could fall in the trade. Along with QE, there are some other components that lead to gold rallying. The withdrawal of QE will bring a fall in the gold prices. The US is now winding down its QE; there could be chances that gold rates in India could be impacted.
Demand for Gold in India Goes Up 15% in 2017
The demand for gold in India has increased by 15% in the initial quarter of the financial year to 123.5 tonnes, leaving a sign of hope for positive return. If we compared with the last year, the total gold demand stood for 107.3 tonnes, owing to the jewellers' strike over excise duty introduction. As per World Gold Council estimation, gold demand increased by 18% in the first quarter to Rs. 32, 420 crore, which was just Rs 27,540 crore in Q1 2016. Here’s a sneak peek on how the demand changes over time:
Demand for Gold
16% rise at 92.3 tonnes
Value of jewellery demand
24, 220 crore with 18% hike
Value term gold investment demand
8,200 crore, 16% hike
Went up by 3% to 14.5 tonnes
Imports during January-March 2017
Rose by 112% to 270.1 tonnes
Why is Gold a Good Option to Invest in India?
If you are keen to invest in gold, you’ll get a plethora of investment options in India. But before investing in gold, you need to be clear about certain things such as why you are investing, the tax liability, the other investment options and everything that you aspire to know about gold. Gold trading has picked the pace within a short span of time by offering favourite investment avenues in India. Though Indian gold market witnessed a stagger in the initial phase of this year regarding Indian Gold Rate, the stalwarts say this is a transitory phase that will pass by soon.
Here are various gold options you can avail in India to invest for good returns:
Jewellery: Buying jewellery every now and then is just like a tradition. In India, some rituals urge to wear or buy jewellery. This way you can invest in gold and can keep it for future use. However, one disadvantage associated with this is that the making charge is included in the buying cost and at the time of selling it, you might get the lesser amount or have to compromise on the making charge if you sell it to the same jeweller from whom you bought it. Because there is no guarantee that the gold price today will remain the same the very next day.
Gold Coin & Bars: Investing in gold coins and bars is trending these days. But be careful while buying. You should only prefer buying it from jewellers or authorised banks. The only difference is that banks sell gold coins and bar but they cannot buy it again. Jewellers, on the other hand, sell the gold and can buy it back from you as well.
Gold ETF: ETF stands for Gold Exchanged Traded Fund, a type of mutual fund which invests in gold and its units are being listed on the stock exchange. If you are seeking to invest in ETF in India, you need to purchase it from the stock exchange by simply opening a demat and trading account. The brokerage fee will be borne by you at the applicable ROI. Further, you need to pay the fund management charge as per the stock exchange norms.
Gold Mutual Fund: Gold Mutual Funds invest in gold ETFs on your behalf. You can invest here just like you invest in other mutual fund schemes. Also, SIP investment is probable in gold mutual funds. But keep this mind:
- You’ll have to pay annual management charges for Gold ETF
- Annual management charges to be paid for FOD Scheme
Needless to say, before buying or investing in any of the above-mentioned options, a web search today gold rate would be a wise decision. Doing this will help you keep tabs on the current gold rate.
Investing in Sovereign Gold Bond Scheme
If you want to invest in physical gold, you should go by the current gold rate. Switch to Sovereign Gold Bonds as they are a much better option. Buying SGB eliminates various risks such as theft, fraud etc. which is why you should consider purchasing gold bonds from top-listed commercial banks. These bonds offer you a nominal interest rate of 2.75% and can be redeemed at the rate specified by the Reserve Bank of India.
SGB can be purchased from the Stock Holding Corporation as well as post offices. There are investors who don’t wish to invest in the bonds since the interest earned comes under tax scrutiny. However, you can enjoy 2 benefits from SGB. First, you get capital appreciation; second, you get regular interest. Hence, investors get to enjoy dual benefits. However, the liquidity of SGB is often questioned and is considered to be very poor. Currently, the NSE-listed bonds are priced at Rs. 28,200 per 10 gms.
SGB is a hit because of its rate of interest, but due to its lock-in period, SGB is disliked by investors.
Is It Safe to Buy Gold through Paytm?
Yes, you heard it right. Now it's possible to buy digital gold through the mobile platform Paytm in association with MMTC - PAMP. You check the gold rate today and easily buy and sell gold digitally in the most convenient manner. It is called the Gold Accumulation Plan (GAP).
Under the Gold Accumulation Plan, a customer can buy 24 Karat / 999 fineness gold through Paytm. The prices are applicable as per the current rate of gold in the market.
The Stock Holding Corporation platform under the GAP, allows its customers to carry out gold transactions as low as Rs 1,000 and in multiples of Rs. 100 afterward. Moreover, you can buy gold as low as Re.1. It permits online transactions of gold in fractions of 0.1 grams as well.
Digital Gold transactions on Paytm do not work as a systematic investment plan or a collective investment scheme. Hence, you will not earn any interest such as gold bonds.
Features of Paytm's Digital Gold
- It offers the option to buy gold either in grams or in rupees as per your convenience
- The customer can buy for a minimum value of Re 1
- The gold can be sold or purchased any day/ anytime even on bank and public holidays
- And the minimum amount of gold one can redeem is 0.001 gram ( as per the gold rate)
- Live gold prices are inclusive of foreign exchange conversion, taxes, foreign exchange conversion, and customs duty and are offered on per gram basis. The prices are exclusive of making charges, product manufacturing, and delivery charges. And the prices are updated frequently
- The transaction price is valid for a maximum of 6 minutes
Store your Gold Safely in India
The best way to store your gold is to stash it safely in a bank locker. Rent a bank locker and keep your gold guarded. But bank-lockers have their own pros and cons. They’re a bit expensive, but they are the safest option. Yet, every time you need to access your gold, you will have to visit the bank. And on bank holidays and Sundays, you cannot access your bank locker. While it is the safest option, there is no guarantee against fire or theft.
To sort this problem, it is recommended to buy gold in its electronic form. Electronic gold is safe against fire or theft. It is ideal for investors looking for long-term savings in gold.
The best thing about buying e-gold is that it helps you in keeping a tab on India gold price. As gold prices in India haven’t been at their best, keeping a watch on the gold rate today is the best way to track today gold prices.
How Much Gold Holdings Does The World Have?
Gold reserves play an important role in the countries and the individuals too. As per the Statista, The United States has more than 8,000 metric tons of gold, which makes it the largest Gold Reserves as of March 2019. US gold reserves are twice that of Germany’s gold reserves and thrice the gold reserves of France and Italy. China is in the sixth position for its gold reserves. As far as mining is concerned, China leads than any other country in the world.
In 2016, the total gold reserves in the U.S.A constitute to 75.3 % of the central bank holdings and in China, it constitutes only 2.3%.
After China, it is Australia who holds the largest gold mine reserves and is the 2nd largest producer of gold in the world. Interestingly, India stands at the 11th position with its gold reserves of 554 tonnes. France, China, Russia, and Switzerland rank higher than India. During the financial crisis, it is the Gold reserves that help the countries.
Gold serves as an investment asset for the governments and helps in recuperating from recession or inflation.
Physical Gold vs. Gold ETFs vs. Sovereign Gold Bonds
Physical gold, gold ETFs, Sovereign Gold Bonds are the various options for investment in gold. These three gold instruments track the rate of this metal.
Sovereign Gold Bonds
One might have to face storage-related issues.
Electronic gold, hence, requires no storage space. No worries.
Again with Sovereign Gold Bonds, there are no such worries.
No interest can be enjoyed. That’s why a lot of investors consider gold as non-yielding bullion.
No interest rate. But, the return varies over financial firms that offer gold ETFs
Going for a gold bond ensures that some interest will be enjoyed. That rate of interest is stipulated by the Reserve Bank of India.
Needs a safe storage space.
As an electronic form of gold, safety is assured.
Buying sovereign gold bonds means you need not worry about theft or destruction. It is a win-win deal.
The Gold Import: India
If you are traveling to India from abroad and gold is one thing you’d like to bring with you, then you need to know how gold is imported to India. Here is the criterion for duty-free import of gold:
- For Male Passengers - Male passengers can’t carry gold worth more than Rs. 50 thousand.
- For Female Passengers - Female passengers can’t carry gold worth more than Rs. 1 Lakh.
You can ask your kids to carry the yellow metal if they are eligible as per the import allowance, but only if they have stayed abroad for at least a year.
People coming to India from overseas have a few import-related questions in their mind. The prices are based on the rates defined by the government for gold import.
Indian government discourages import of gold in India. It’s because the gold purchased in dollars drains the Forex reserves of India. The Indian government has come up with Sovereign Gold Scheme in order to make sure the demand for physical gold is reduced. Because it might not be feasible to continue doing the same, the government has come up with various alternatives to serve this purpose.
22 Karat and 24 Karat Gold: Know the Difference
The purity of Gold is measured through a unit called ‘Karat’. There is a belief that higher the karat, purer the gold is. You will get a variety of gold options such as 22 karat, 24 karat, 18 karat. You should be prudent before making any investment especially in case of 22 and 24 karat gold and their difference. Also, thorough check of current price of gold cannot go amiss. To do so, simply search for India Gold Rate in your browser search bar.
24 Karat Gold
22 Karat Gold
It has no trace of other metal
Marketable in jewellery or decorative form
Known as 99.95 pure gold
Not 100% pure gold, up to 92% is pure gold and remaining part is preservative metals such as zinc, silver or other metals.
Slightly expensive than the other
It is cheaper than 24 karat gold with less weight
It offers guaranteed resell globally due to liquidity of gold and extreme demand
The colour of gold is changeable by mixing other metals like alloy
Gold colour is pure yellow and untainted
It cannot be used directly in making ornaments or jewellery
Though it is best for jewellery making but not recommended for diamond or gemstone studded jewellery.
Not bendable in its original and pure form
It can be easily shaped into jewellery.
Despite the differences, they both are considered as the pure form of gold due to the percentage they offer. However, if you are in quest of investing in gold bars, 24-karat gold makes more sense owing to its robust and resell benefit.
Factors Influencing Gold Price in India
Gold price is not steady. Today gold rate may vary from yesterday owing to a few factors that have an extensive influence on rise or decrease of gold rate in India. Let’s look at a few of them. Here we go:
Influence of Inflation Rate
Due to its steady nature, the investors prefer to use gold over currency. It results in an increase of the demand for gold when inflation is high. The price of gold also tends to shoot up with the increasing demand for gold among the investors and customers. This, in turn, affects gold rate today in India, further affecting the hike or dip.
The global movement may affect the today gold price in India. India being the largest importer, gold is being imported today from each part of the world. Hence, when import rates change owing to a global movement, some it holds a significant impact on gold price in India. Since any political disturbance may influence the value of currency or financial products, gold is considered as a safe sanctuary by the investors. It is often noticed that an interest for purchasing gold increases during a political crisis than a normal time. This situation is called as ‘Crisis Commodity’ as customers tend to buy more gold, trailing the confidence in the government and the market.
Government Gold Reserves
Central banks, in most cases, have the right for gold reservation. Reserve Bank of India is one such institution which can hold a gold reserve. When central banks do so or procuring gold in excess, the today gold rate goes up. It is due to the rise in the flow of cash in the market but the supply goes down.
Jewellery has always been placed in a special category in India, mostly among the women. And when it comes in the form of gold, it is icing on the cake. Be it a wedding, festivals, birthdays, wearing gold jewellery is kind of a fashion here that has been followed since ages. There are festivals when the gold price goes up like Diwali due to the increasing demand for gold, and when demand and supply are unable to balance each other out, it results in rising gold rates. Again, the demand doesn’t end here. Even in electronic items like TV, computers, GPS etc. it has been used in small quantity. In India, gold is a medium of showing off your status, as a gifting element, which, by any means, increases its demand day by day. Gold rate today plays an important role in sale and purchase of gold jewellery and ornaments.
Interest Rate Trends
Interests rates imposed on financial products and services also affect the gold rate today. If interest rate increases, customers seek to sell gold to obtain cash and on the other hand, a rise in the supply of gold leads to the reduced price of gold and vice-versa.
GST Imposed on 24 Karat Gold
Gold rates have slightly gone up as 3% of Goods and Services Tax (GST) is being imposed on gold jewellery. Before GST, gold jewellers used to pay 1.5 excise duty, 1.2% VAT and 10% as customs duty on the gold purchase, which comes around 12.43% tax. After 3% GST came into practice, the jewellers are now paying 10% for import duty, 18% tax for making charges, which was zero before GST. And this effectively comes to 15.67%. However, with the constant protest of Indian Jewellery Council, the government later fixed the tax on making charges at 5%. The buyers now also have to pay an extra 3.24% tax as per GST rule while buying Gold jewellery.
How Gold Prices Move in India and Globally?
There are a few components, which play a crucial role in affecting the India gold rate in a positive or negative way. Here are the 5 reasons why gold rate today is different as compared to 10 years ago.
- Demand/Supply - Demand is the sole reason why the rate of gold changes every day on a regular basis. When the supply of gold is constant and its demand increases during the festive/marriage season, the gold price increases.
- Global Production - On an average, the global gold production is approx. 2,500 tonnes during any given year as compared to the total gold circulation across the globe which is approx. 165,000 metric tonnes. The applicable gold price is affected by the production cost of the additional gold.
- Industrial Uses and Jewellery - The combination of the different features make gold a perfect choice for various industrial usages. As the consumption of these industrial products increases, the demand for gold also increases. In India, 50 percent of the gold demand arises from the jewellery sector. During the festive season, the demand for gold increases that leads price increases.
- Central Bank Controls - The gold reserves at the central bank ensure that the deficit financing doesn’t devaluate the currency so that hyperinflation is kept at bay.
- Economic Instability - In our world, no economy is self-sufficient and each country depends on another country for some kind of goods or services. In these situations, the key player in the world economy is the US Federal Reserve and each country has its own central bank. When these central banks introduce any measures which are considered as erratic then, many investors go for safer options such as gold instead of paper currency so that they have some tangible security. This leads to increase in the gold rates.
What are the Various Gold Options Available to Buyers?
Physical gold is available in 24 karats, which is considered as the purest form of gold. The 22 karat is the jewellery grade gold and 18 karat is less precious.
Here are the common formats for buying gold.
- Jewellery (with/without precious gems/stones) - It comes with purity issues, safe keeping issues along with the manufacturing charges. Gold rate is different from the exchange traded price.
- Gold Coins - They can be of historic nature if they are collected from any archaeological digs. The coins minted under the Central Bank guarantee the purity which is available in different denominations from 2 grams-50 grams.
- Gold Bars - Minted by RBI at designated mints, these are guaranteed to be pure and these are available through the selected banking institutions only.
Gold Trading as a Commodity in India
Commodity trading is a new development in our country and gold has become one of the key commodities that is being traded in the commodity exchanges of India. One can go for gold trading through the 3 dedicated commodities exchanges:
- Multi Commodity Exchange of India Ltd.
- National Multi Commodity Exchange of India Ltd.
- National Commodity and Derivative Exchange
These three exchanges are present across the country and they offer electronic trading or settlement systems. These exchanges are governed by the Forward Markets Commission.
Gold Futures Contracts on MCX
MCX India deals in the future trade of gold along with a wide range of different commodities. At present, MCX offers various gold future contracts alternative for the investors looking forward to an investment:
- Gold - It has a trading unit of 1 kilogram and the maximum order size is 10 kilograms. The highest permissible open position for a person is higher of 5 metric tonnes for all the gold contracts coupled together or 5 percent of the market wide open position.
- Gold mini - It has a trading unit of 100 grams and a maximum order size is 10 kilograms. The maximum permissible open position for a person and for a member dealing collectively with all the clients is same as that for Gold Futures Contracts.
- Gold guinea - Every gold guinea contract constitutes of a smaller amount of 8 grams and it is targeted at people with a small capital base. Starting from a low amount, the maximum permissible open position is at metric tonne for all the gold contracts clubbed together or 5 percent of the market wide open position for the individual customers.
- Gold petal - It involves only 1 gram of gold per unit as it is designed specifically for the small investors. The maximum permissible open position is same as the above contracts. One can buy up to 20,00,000 Gold Petal Contracts.
- Gold global - It’s a contract based on the international price that designed particularly for the requirements of exporters, jewellers, refiners, and larger bullion market participants. It is a new product from MCX which was launched in July 2015.
How to Sell Gold in India?
Before you sell your gold, you need to keep a few pointers in your mind so that you get best of the best deal.
- Retain invoice: In order to be eligible to sell your gold to a reputed jeweller and getting the maximum value from your investment, you must keep the original invoice with you.
- Get it evaluated: Before you sell your gold, make sure you get its value checked twice or thrice so that nobody can cheat you.
- Check the purity of gold: Before you sell your gold, it’s important that you get it hallmarked. In case your jewellery isn’t hallmarked then get its purity checked. Also, compare the purity and price with Gold Rate Today to get an idea of the price you may be offered in exchange.
- Pick a trusted shop: Make sure that you sell your jewellery at a reputed store so that you get a fair price.
How to Check Purity of Gold
There are multiple ways to check the purity of gold.
- Look for the Hallmark Stamp: Pure gold always carries a stamp. Reputed stores stamp the jewellery with purity scale. To check the purity of your gold, simply place it under the magnifying glass and check for the hallmark stamp.
- BIS Standard Mark: BIS is used as a benchmark stamp for the purity of gold. Every legal jewellery item will carry this stamp on it.
- If there is Any Discolouration: You can check the purity of your gold by noticing any discolouration or not. If your piece is only gold plated, it will start showing a different metal under it and colour will be faded.
- Try with a Magnet: We are aware the fact that gold is non-magnetic. So, if it pulls towards the magnet, it’s not real. However, it never shows 100% result, as sometimes non-magnetic metals are used with pure gold as well. To perform this test you will require a strong magnet that you may find in a hardware store or in regular things such as purse latches, old unused hard drive or children’s toys.
Gold Weight Conversion Table
To convert from
Latest Gold News
Gold Hits the Record Rate of Rs.52, 309 for 10 gm; May Touch Rs.65, 000 This Year
The gold analysts are forecasting a price hike which may touch around Rs.65, 000 for 10gm by year-end because of monetary and fiscal stimuli by the central banks and governments across the world for tempering the economic impact due to COVID pandemic.
The gold rate has hit a record hike of Rs.52,309 for 10 gm (excluding the GST) in the evening trade polled by IBJA (Indian Bullion and Jewellers Association). As per the New York Times, the overseas gold rate has broken nine years record and reached as high as $1,920.3 for an ounce for trading at $1.933.3. The jump in price comes because of very low levels of physical demand of jewelry in India as per Somasundaram PR, MD, India of Word Gold Council (WGC).
He further said that two factors have caused low domestic demand of gold in India – one is record price hike and the second is COVID. The demand may pick up during Diwali when normalcy to return in a specific way is expected.
The overseas rate has become as high as $1975.4 before paring expected gains in profit booking. The third quarter, which is July – September, generally sees a downfall in demand as households of rural areas use their disposable income for the needs of the farming sector. On the other hand, the fourth quarter sees a sudden hike in demand because of weddings and other festivities.
For the past four years till 2019, the annual demand of India has been 724 tonnes on average but the figures for this year are expected to be on the lower side because of the impact of Pandemic on the household income and economy..
India Saw A Drop of 99.9 % drop of Gold Import Amid Lockdown Due To Coronavirus
With the nationwide lockdown, India’s gold imports saw a significant drop of 99.9 % year-on-year in the month of April. As per the government source, it is the lowest in almost three decades. One of the reasons cited for this drop is because of the ban on jewelry and tourism industry to curb the spread of novel coronavirus as per the source.
Indian is the second-biggest consumer of gold in the world. However, in the month of April, the nation imported just 50 kilograms of gold which was around 110.18 tonnes in the last year, as per the source.
In value terms, the import of gold also dropped to $2.84 million to $3.97 billion a year ago, as per the source..
'Gold Rate Today Remains Flat As India Enters Lockdown 3.0
Gold prices today in India remained flat while silver futures saw a negligible increase as India entered its third lockdown to curb the spread of coronavirus disease. This comes in the light of the rising tensions between the United States and China and the probability of a global economic recession and expectations of favourable economic measures from central banks.
While most parts of India assumed near normalcy as businesses and movements were permitted in less affected areas, gold traders stayed cautious about taking any risks amidst the increasing US-China tensions regarding the origins of coronavirus from a Chinese laboratory.
As on 4 May 2020, gold futures stayed unaffected at Rs 45,529 per 10 grams. On the other hand, silver saw a gain of Rs 35 or 0.08% to Rs 41,632 per Kg. However, spot gold markets in India remained closed as a precautionary step to prevent the spread of COVID-19.
On the global front, gold prices moved lower as the US dollar strengthened. Nonetheless, prices of the gold were traded higher than the two-weeks’ low in the last session as the growing tensions between India and China weakened the risks.
Gold futures in the US gained 0.3% to 1705.90 dollars per ounce, while the spot gold reached its lowest since 21 April as it eased 0.1% to 1697.43 dollars per ounce on Friday. Moreover, silver slipped 0.6% to 14.85 dollars, platinum eased 0.4% to 757.27 dollars. Palladium gained 0.7% to 1912.52 dollars per ounce.
According to Perth Mint in Australia, investors have stocked up gold amid concerns of its shortages to combat the economic impact of coronavirus. This has led to the highest rise in gold sales in April 2020 as compared to the last eight years. Moreover, as per US CFTC, money managers and hedge funds have also improved their bullish positions in their contracts of COMEX silver and gold.
India has witnessed a total of 42,533 cases of coronavirus and has claimed 1373 lives so far (as on 4 May 2020). Globally, over 3.51 million people have been diagnosed with COVID-19 and about 1.13 million people have died of the disease.
'Hallmark' Tag is a must for Jewellers Selling Gold, Export Items Exempt
Only the registered jewellers can sell jewellery and artefacts made of gold and they can sell gold only with a ‘hallmark’ tag from the Bureau of Indian Standards (BIS). A hallmark tag indicates the purity of gold products.
The ministry of consumer affairs issued a notification with the proposal to practice control order for sale of all the items made from precious metal, which are over 2 grams and are for domestic consumption.
The notification says that the new standards will mandate the retail sellers to get certification and get a hallmark tag on their gold items before selling them to the end-users.
Gold Prices Escalated Globally, at an All-Time Higher in India
Gold has recovered the lustre a long period of time on the back of soaring pressures between the United States and Iran, the trade war in progress and calm stance of the central banks.
The metal has reached a record of Rs. 34,470 every 10 gram, the profit of more than Rs. 200, in New Delhi on June 24. Gold was closed at a price of Rs. 34,588 along with the future market prices recommending an economic rise. Gold charged Rs. 34,700 on MCX, pointing an upswing from the existing levels, with the trackers of commodity market anticipating the prices to rise northwards from some time.
Globally, gold hit USD 1,439.7 per ounce on Tuesday. This is the maximum level ever since September 2013, with a weaker dollar to lend additional support.
Demand of Gold Drops Down by 10% as the Prices Touch 14-month High
Demand for lustrous metal has been faded by 10% last fortnight as the prices of gold touched 14-months high last Friday. That was at Rs. 33, 014 every 10 grams. This price excludes Goods and Service Tax (GST). Lower demand of the metal has resulted in gold being available @ a discount of USD 8-10 every troy ounce in the gold market at the Business to Business (B2B) level. This has grown up from USD 5 a week ago. The discounts offered on gold rises when the demand for the metal goes down.
In the beginning of this month, gold was made available for Rs. 32,305 every 10 grams, and resultantly grew to touch the highest on June 14. The price was more than Rs. 34,000 every 10 grams and this includes GST. On Monday, this week, it was trading at Rs. 32, 955 every 10 grams. However, various bankers like Shekhar Bhandari – the Vice President of precious metals at the Kotak Mahindra Bank gave his verdict that it is likely to grow by around 3 per cent in the near future.
India’s Gold Import Market Sees 49% Growth!
India's gold import market sees a growth of 49% as compared to last year, which is 116 tonnes. This happens due to the price lower price during a key festival called Akshay Tritiya that boosted the retail demand for gold.
India is the world’s second-largest consumer of this precious metal, where higher gold imports could support global prices. As per the source, the country’s imports value rose to $4.78 billion in May from $3.48 billion last year.
Indians believe that buying gold during this festival is auspicious, thus local gold prices fell to the lowest level in 5 months, prompting the jewellers to stock up inventory.
In June, gold imports are expected to fall below 80 tonnes as prices will rise in the global market. The consumption of Gold in India in the year 2019 is 750-850 tonnes. It was 760.4 tonnes last year, a 10 year’s average of 838 tonnes, as estimated by the World Gold Council.
Lowest Gold Demand Reported Due to Price Surge; All Hopes on the Lunar New Year
The gold prices stood unstable at the beginning of 2019 as the prices soar to their highest level in 2.5 years, since July 2016. Due to high prices, the demand was also low. While sellers across Asia held hopes to price stability in the Lunar New Year.
The local gold prices touched the highest point in India, which is the 2nd largest gold consumer across the world. And the prices are increasing day by day. While the merchants across the country are waiting for a correction in the rates and a moderation in the duty cuts in this year’s budget.
Also, the bullion industry has been anticipating a reduction in taxes to oppose smuggling that has been increasing since import duty was raised to 10 percent by India in August 2013. The industry takes into consideration the duty cuts every year before the releasing of the budget by the government. But in the past 6 years, there hasn’t been any change in the tax structure.
Merchants in India were providing a discount up to dollar 7 an ounce over official domestic prices this week, up from last week's discount of dollar 6. 10 percent import tax is included in the domestic prices.
Gems & Jewellery Sector Strive for Reduce Import Duty on Gold To 4%
All India Gem and Jewelry Domestic Council also request the PAN card limit to be increased to INR 5 lakh from INR 2 lakhs.
The gems and jewelry Council has asked to reduce the import duty on gold to 4%, cut and polished gemstones and diamonds to 2.5 percent. It has also sought a relaxation of credit standards for working capital requirements in the budget 2019.
Anatha Padmanabha, Chairman of All India Gem and Jewellery Domestic Council, in a letter to the finance minister said the 10 percent gold import duty was imposed to curb CAD/Current Account Deficit. Pramod Kumar Agrawal, Chairman of the Gem and Jewellery Export Promotion Council also urged the government to reduce the import duty on cut and polished gemstones and diamonds from 7.5 percent to 2.5 percent. He further added that in June 2017, India's trade deficit reduced to $ 12.96 billion, and the increased gold import duty has given rise to the grey market.
He also recommended that the PAN card limit should be increased to Rs. 5 lakhs. There are lesser than 50% PAN card holders in India and making it essential for the purchase of gold items/jewelry above 2 lakh rupees is difficult for rural buyers. Most of them do not have it and some of them are reluctant to share it.
Meanwhile, Gem and Jewellery Export Promotion Council also insisted the government alter the income tax regulations allowing the foreign mining companies to trade raw diamonds through the special notified zone. The GJEPC has also sought a conducive banking environment for gems and jewelry exporters by relaxing the credit norms. Moreover, it seeks a GST of 0.25 % on the input services (the certification and work-related services) and gains benefits of inverted duty structure to such services also.
Rural Demand for Gold likely to grow this Akshaya Tritiya
Gold sales in the villages of India might raise this Akshaya Tritiya. This is because of the targeted farm welfare schemes are likely to aid in enhancing the discretionary expenditure on the lustrous metal, customarily the preferred store of the value in the hinterland.
Market analysts have a belief that the financial aid under Kisan Samman Nidhi Scheme must leave farmers with handsome cash that they can use to purchase gold in the festivities. The preferred stores of the value of Rural India are land and gold. The senior analyst (commodities) at the HDFC Securities, Mr Tapan Patel said, “We can have an expectation of higher rural demand for the precious metal due to the recent populist measures taken by different State and the Central governments that have boosted rural and farm income.
Akshaya Tritiya is on May 7 and rural India purchases the precious metal ahead of this event on the receipt of sale profits from crops grown in winters. Hence, the local prices generally remain calm in this season.
Top Ministerial Group to Meet to make Gold an Asset Class
India is going to organise an inter-ministerial group meeting this week on making gold an asset class. This move aims to reduce the dependency on imports by amplifying the distribution of around 25K tonnes of the lustrous metal lying in the form of coins or jewellery.
The asset class status would give the Indians the chance of capitalizing gold and making it as liquid as the stock of any listed firm. The work is being carried out by the government to have India gold delivery standard, just like the gold, which is certified by London Bullion Market Association (LBMA) - the standard setter for the metal in the world.
This meeting of top ministerial is about to take place in the capital city of the country – New Delhi. A key role has to be played by the Bureau of Indian Standards (BIS) in making the metal as an asset class.
Gold Bullion is Rising: A Global Slowdown Tensions Predict a Better Future for the Metal
Contradictory news and macro data have kept the market of commodity volatile in the recent past. The good and the bad news thing have turned the market a better hunting field for the traders.
In the middle of the market volatility, the allure of gold as a safe refuge has only brightened up. The yellow metal registered the second weekly profits, having logged 3% for this year. Even though the prices ended the week off the highs, but the lustrous metal held on to the crucial initial support level, a better indication, which prices have a few headroom on the upside in the shorter term.
Concerns over the global slowdown, especially in the United States of America, which reported lethargic economic numbers over USA-China trade tensions have been the key reasons behind the renewing the interest in gold of the investors. In the previous week, the dollar index correct almost 0.16% on Friday, one of the biggest weekly falls in a month.
Gold Imports Drops by 5% During April-January to USD 26.93 Billion
The gold imports of the country dropped about 5% in value to $26.93 Billion during April-January 2018-19. This was anticipated to keep a lid on the existing account deficit.
As per the data by commerce ministry, total imports of the lustrous metal in the corresponding FY stood at $2823 Billion.
The industry experts and gurus said that the softening prices of the lustrous metal in the markets of the world could be one reason for the contraction of the imports.
After recording the negative growth for 3 consecutive years – October 2018, November 2018, and December 2018, the gold imports increased by 38.16% to $ 2.31 billion in January 2019.
India is one of the leading importers of the precious metal in the world, and the imports chiefly look out of the demand from the jewellery industry. Jewellery and gems exports also have fallen by 4% to $32.9 billion during 10 months of the existing fiscal year.
The current account deficit (CAD) of India, i.e. the difference between the outflow and inflow of the foreign exchange in the existing account, has grown to 2.9% of the Gross Domestic Product (GDP) in the 2nd quarter of the financial year, against 1.1% in the previous year, due to large trade deficit.
Gems & Jewellery Sector, India to Introduce Reduced Rate of Gold Import Duty
Gold import duty has witnessed a reduced rate of 4% in cut and polished diamonds. Import duty of cut and polished gemstones have reduced up to 2.5%. form a current rate of 7.5%. In his letter to Finance Minister Arun Jaitley, the Chairmen of All India Gem and Jewellery Domestic Council (GJC), Anatha Padmanabhan notified 10% import duty on jewellery made of gold to limit current account deficit (CAD).
Due to the increased import duty on gold, te grey market has seen a rise, despite India’s trade deficit narrowed more-than-expected to USD 12.96 billion in June 2017. He also suggested an increased limit for PAN card up to Rs 5 lakh from Rs 2 lakh. However, the number of PAN Card users in the country is not even 50% of the population and making it mandatory for purchasing gold jewellery above Rs. 2lakh seems to be difficult especially in case of rural areas, where most of them do not have one or reluctant to share it.
He further requested the government to allow 5% of the FOB value of exports of cut and polished diamonds to be re-imported duty-free in the previous licensing year.
GJEPC also urged the government to enable mining companies in abroad to deal with rough diamonds via particular notified zone. It also asked for a favourable banking environment for exporters of jewellery and gems, in regards to reducing credit norms for the requirements of working capital.
The Chairman & Director of Kalyan Jewellers T. S Kalyanaraman also is hoping for an uplift in optional consumable spends due to the newly introduced income tax slab to Rs 5 lakh. This will contribute spending more on precious items like gold and jewellery or other consumables, he said.
One-Rupee Gold Entices Indians as the Sellers Look for Boosted Demand
Indians who buy gold for as less as one rupee as retailers provide online sales in small proportions to hold up wincing demand in the second-largest consumers of the world.
Gold demand is declining, to a certain extent as a result of the measures taken by the government, fading appeal of the lustrous metal among young consumers, and higher local costs. This is forcing the jewellers to get used to carrying out online purchases to appeal to more internet freak, youthful population of the country.
“Many people have been purchasing at just one rupee,” said the Managing Director of the Digital Platform SafeGold, Mr Gaurav Mathur. SafeGold has joined hands with various payment apps such as PhonePe of the Flipkart Online Services Private to sell the gold starting at this price. “This is a low-risk means to try this product.”
Buyers of gold only get the physical delivery of gold once they pay enough for one gram of the metal, at present around Rs. 3,200. The low barriers of entry, compared to the least purchase of one gram in the conventional market, and even faster transaction that can be made on phone in just about 40 seconds, are the major entices for the product, Mr Mathur said.
Gold Buyers of India Notice Prices Surge at the Time of Diwali
Gold buyers in India, the second largest market after China, might give jewellery stores a miss at this time of festivity this year due to surging domestic prices to the highest level in over two years.
Metals Focus Ltd. Analyst, Chirag Sheth, in Mumbai said Gold has climbed in the local markets due to a weak in rupee, and increasing prices before the Diwali and Dhanteras celebrations are not good for demand. ‘Overseas spot bullion has shown the signs of getaway in the past two-three days. If this thing continues, it is going to be a constraint,” he added.
Dhanteras, falling on November 5, is the most auspicious and favourable day of the year to purchase gold. Dhanteras falls just two days before Diwali. It s believed that gifting or wearing of gold jewellery is meant to bring good fortune and prosperity during the weddings and celebrations. The final quarter of the year is the season of crowning demand, with the Indian citizens purchasing about 240 metric tons on an average in the past 4 years, as per the World Gold Council.
Bullion future on Multi Commodity Exchange of India Ltd has scaled 9 per cent in the current year, which is the highest since July 2016, whilst overseas bullion has fallen 6 per cent.
Sluggish Demand from Jewellers Decreases Gold Rates
On Tuesday gold prices declined by Rs. 100 to 31,450 per 10 gram owing to slack demand by the jewellers. However, the yellow metal performed well overseas. Silver continued to be steady at Rs. 37,950 per kg, due to continuous demand from the industrial units and coin manufacturers.
As per the traders, the fall in gold demand from the jewellers and retailers lead to the downfall of gold prices in the Indian market. However, the metal is trending well in the international markets. Singapore saw a rise in gold price by 0.07% to $1196 an ounce and silver by 0.28% to $ 14.20 an ounce.
In the capital city, 24 (99.9%) carat and 22carat (99.5%) gold shed Rs. 100 each to Rs 31,450 and Rs 31,300 per 10 gram, respectively. In the sovereign states, the rate remained unchanged at Rs. 24,500 per 8-gram gold. On the other hand, the silver rate was trending at Rs 37,950 per kg, while the weekly rate rose by Rs 80 to Rs 37,405 per kg.
Rise in Import of Gold may Dent Banks’ Market Share in India
There may be a rise in the gold Dore imports of India to a record in 2018 on lesser import duties. This increase can lead the bullion refiners of the country to eat away at the gold market’s share held by the banks.
The Secretary of the Association of Gold Refineries and Mints, James Jose, quoted that the imports of a semi-pure alloy, also known as, Dore - made by miners, may rise from 250.6 tons to 300 tons the current year. He quoted this in on the India International Gold Convention’s sidelines, in the southern part of Kochi.
Jose reported Reuters; the total gold imports of India may fall to approximately 750 tons in the year 2018 that would increase the share of Dore imports to around 40%. As per the World Gold Council reports, 917.7 tons of gold was imported in the year 2017 to India (world’s second largest gold consumer).
The increasing imports of Dore reduced the share of refined gold supplying banks in the market such as ICBC Standard, UBS, JPMorgan, HSBC, and Scotia bank.
“Because of duty advantage, the share of Dore is increasing in the market. Bullion players must continue to drop market share,” said ICBS Standard Bank’s commodities strategist, Marcus Garvey.
New Brand Campaign Launched by Kundan Gold Refinery
Kundan Gold Refinery, a prominent name among Indian gold refineries, recently launched a new brand campaign. The campaign’s purpose is to highlight the brand’s commitment towards providing its customers with quality services and to promote Kundan as the ultimate choice for customers seeking fashionable jewellery.
Though this campaign, the company aims to shift the customers’ focus to the importance of buying the right jewellery at affordable pricing rather than blindly following the conventional routes of buying expensive items. The new ad campaign encourages the customers to replace traditional gold jewellery gifts with Kundan coins.
India Gold Discounts Shoots to Maximum in Last 2 Months
Due to sluggish demands, gold discounts this week have rocketed to their highest levels in the last two months. Indian dealers are offering a discount of up to 4 USD an ounce over and beyond the official domestic prices, which is the best available discount since March 24’2018.
Jewellery showrooms have been forced to slash the prices due to lower footfall. The demand is expected to remain subdued unless Indian rupee fall sharply. Meanwhile, China is remains the top consumer due to improved gold demand in the country with a premium of 8-9USD per ounce over the benchmark price.
Global Gold Demand Sees its Worst in the Q1 Since 2008
According to the WGC (World Gold Council) report released on Thursday, 03rd May’18, the global demand for gold has reached its lowest since 2008. The comparison was done on the basis of the gold’s performance in the first quarter of a year.
The fall in the gold’s performance was largely due to the drop in gold-bars and gold-backed ETFs (Exchange-Traded Funds) investments.
The good thing is, although the demand was low for gold in the first quarter in rest of the world, China has witnessed an encouraging level of growth in its gold sale.
Countries like the US and Europe have also maintained a steady inflow into gold ETFs, even if it is a much slower pace compared to the last year.
Wedding Buzz Lifts Gold Prices By Rs 225 To Rs 32,450
Even though the demand of gold is facing a crisis, it experienced a surge by Rs 225 to Rs 32,450/10 grams in the national capital. The wedding season has upped the demand for the domestic jewellers. Thanks to bullion traders who have attributed to the recovery in gold prices.
Furthermore, weakening of rupee against the dollar has also influenced the surge as it has directly influenced the imports, making it costlier. Sovereigns are, however, being traded at previous level of Rs 24,800/piece for every 8 grams.
Additionally, due to the increased offtake by the coin makers and industrial units, the silver too, has recovered by Rs 200 to reach Rs 40,700 per kg.
Gold Performs Best Since 2011
The year 2018 comes with numerous reasons for gold bulls to be delightful. The third quarterly gain of bullion is wrapped the highest rate in years, an achievement that not seen since 2011. The demand for safe-haven asset may increase with the foreign-policy of Washington.
Despite showing a little change on price at $1,325.17 an ounce on Thursday, gold bullion rose to 1.7% and saw a gain of 1.8% in the last three months of 2017. This change has happened due the interest rate imposed by US govt.
The price of gold has regained as President Trump’s govt. indulges in a series of trade fights. The investors worry about this face-off, which started from Wall Street and spread across the world. Though the geo-political tension with North Korea may be lessening, Trump’s decision of appointing John Bolton as new national security adviser has created conjecture of a probable risk in the oil market, as it draws a tough line against Iran.
As per a date presented by Bloomberg, the investment in bullion-backed exchange-traded products has increased up to some thousands of metric tons this month, which is the highest since 2013. Hoard has also witnessed a rise of around 43 tons. While the global stocks saw quarterly fall since early 2016, the dollar dropped by almost 3% since December 2017. Other valuable metals are also seeing changes in the rate, like 4% fall is noticed in gain of Silver, Platinum is about to collect the second quarterly gain, while with 8.7 percent fall, Palladium is set to embrace the highest quarterly loss since 2015.
Global Gold Rate Hikes due to US-China Face-off
The price of gold saw a hike on Monday as the price of the dollar dropped due to the growing concern of a trade-related tension after China imposed extra tariffs on certain US products. The gold rate went up 0.5% to $1,331.19 per ounce. The gold futures rose by 0.6% to $1,334.90 an ounce. However, gold price dropped by 1.7% last week. Despite the drop in gold price, investors were optimistic and a rise in the rate was predicted. The rate of this precious metal rose by 1.7% between January and March 2018, securing its third direct quarterly gain.
Yuichi Ikemizu of ICBC Standard Bank (Tokyo) said that the probability of trade war getting worse had compelled the people to sell dollar and buy gold.
As a reaction to import duties imposed by the US govt. on aluminium and steel, China imposed 25% extra tariff on certain US products which include fruits, nuts, wine as well as frozen pork.
Other precious metals that witnessed changes in the rate as well. Silver by 0.8% to $16.45 per ounce, a rise of 0.8% to $935 per ounce was witnessed in Platinum trading. On the other hand, Palladium trade saw a drop of 0.1% to $950.55 on Thursday, to its lowest level in some time.
Lower Gold Import Duty and Set Jewellery Parks: Says Niti Aayog Committee
In its recent meeting, Niti Aayog Committee suggested a lower import duty on gold and advised the centre to encourage local manufacturers by setting up jewellery parks or by making mining feasible. It has been suggested as a step forward in the direction of “financialization” of gold’s holdings in India’s market.
Headed by Ratan P Watal, Aayog principal adviser, this committee has also accentuated the need of setting a regulatory body to head the gold industry in India and has made 84 recommendations under 20 heads. The committee is hoping that these recommendations are implemented within 3 months to 1-year time limit.
To make the MSME sector an organised sector, it has suggested some tax policies, which will help in this migration. The committee said that it is achievable only by rationalising the import duties on gold doré and gold, which in return will eliminate the arbitrage charge in India and international gold rate, and thus, will dis-incentivise smuggling. The committee strives to get an equality of pricing of Indian and international jewellery by making the exports competitive, price wise. Responding to this, the govt. has levied 9.35% import duty on gold doré. Niti Aayog Committee said that the initiative of financialisation of gold will help in bringing transparency in gold-related transactions and add towards India’s savings rate.
The committee, while commenting on ‘Make in India in Gold’ initiative, said that it should consider gold as one of the tier 1 industries of the Make in India initiative. If mining of gold is pursued actively, it would definitely create additional employment opportunities, even in the rural areas of the county. This way the domestic supply of gold can be increased and the ratio of import can be reduced, said the committee.
Asian Gold ETFs Grow by 10% in February: World Gold Council
Gold prices in the Asian Market have inched up to their highest in Feb’2018. This recent volatility in the gold prices has resulted in adding more tonnes in the Asian market compared to North America and European market. Asian-listed gold Exchange Trade Fund added 7.9 tonnes of gold and its worth comes to $318.1 million.
This trend shows the vigorous gold demand from emerging markets like Asia and also focuses on the increasing interest and accessibility to ETFs in Asian countries. One of the major reasons behind this is the statement released y the US President Donald Trump where he stated that he would start retaliatory tariffs on the imports from other countries.
This has rekindles fears of a possible trade war which has further weakened the dollar in the international market. Gold is used as an alternate option for investment whenever it comes to political & financial uncertainties and the weaker dollar makes the metal available at cheaper price to the users of other currencies.
Gold Prices Peaks up the Pace After Hitting Low the Last Week
After watching a considerable low phase in the pricing last week, Gold prices are finally back on the track. With the U.S. dollar gaining its positive momentum back, gold prices have edged up this Monday.
1. Spot gold rose experienced a rise of 0.1 percent in its price which was experiencing a major fall by 1.4 percent for the last week ended at February 23rd 2017.
2. Asian markets also reacted positively to this news and the coming week seems promising due to the upbeat mood of the markets.
3. The U.S. Federal Reserve found this steady growth to be continuing and doesn’t find any serious risks arriving on the horizon that can lead to the possible hindering in the rate hikes.
4. The Bank of England might raise the British interest rates much sooner than it had been earlier anticipated by Deputy Governor Dave Ramsden, said a report released on the last Saturday.
5. The high local pricing in gold had a positive impact on the gold demands in India. However, due to the occasion Lunar New Year holiday, the demands in other Asian countries were rather subdued.
Gold Price - Jump Affects Demands, Brings in Discount
For the first time in last three weeks, Gold, in the physical form, was sold at a discounted price. This is because of the downfall in the gold demand, affected by hiked local price. The demand reduced to quarter the usual level (to be precise) due to the recent price surge as per Harshad Ajmera, a gold wholesaler in Kolkata.
On Friday, the physical gold, per 10 gram, was trading around Rs. 30, 810, which also hit the 15-month high of Rs. 30, 836. In comparison to $1.5 in the previous week, Indian dealers, over the official domestic price, offered a discount up to $3 per ounce.
As per WGC (World Gold Council), the demand for gold in India, for the third year, was expected to remain below its 10 year average, as new transparency rules and higher taxes were to cap the previous year’s rebound in the sale.
As per records, gold imports in India dropped 37 percent as compared to the last year in 17 months.
Gold ETFs Witness Rs 679-crore Outflow in Just 10 Months
Due to unsatisfactory performance of Gold Exchange Traded Funds (ETFs), the investors pulled out Rs. 110 in the month of January, which has further increased the total estimated outflow to Rs 679 crore in the fiscal year 2017-18. As per the latest update from the Association of Mutual Funds in India, this outflow indicates 15% decrease in assets under management (AUM) of gold funds, which plunged to Rs 4,906 crore. In the same period last year, this figure stood at Rs 5,670 crore.
Trading in ETFs has been tepid in the past few years. It had witnessed a heavy liquidation of Rs. 775 crores in 2016-17 Rs. 903 crores in 2015-16, Rs. 1475 crore in 2014-15 and Rs. 2293 crore in 2013-14.
On the contrary, Equity and Equity-Linked Savings Scheme (ELSS) witnessed an inflow of around Rs. 1.5 lakh crore within the first ten months of the financial year 2017-18. In fact, ELSS attracted an investment of around Rs 15,000 crore in the last month alone.
Except for few months, India has witnessed only a negative flow in gold ETFs. This nose-dive started in February 2013. Unsurprisingly, the inflows have also dwindled from several hundred crores in 2012 to single-digit crores or nil in some months. As mentioned by Vidya Bala, the head of mutual fund research at Fundsindia.com, the 3-year annualised returns of domestic gold is less than 3%, which is lower than even the interest rate on savings accounts of many Indian banks.
India Gold Import in January Dropped to the Lowest in 17 Months
Gold import in India, in January, dropped to its lowest in past 17 months, as consumers either dropped or postponed their plans to purchase gold in expectations of low price due to cut in the import duty, data received from banks and the consultancy GFMS, as per the dealers nationwide.
Although India is the second-biggest gold consumers in India, this reduction in the gold purchase across the nation could affect the gold prices worldwide, which have seen a 7 percent increase in the past 8 weeks.
The trade deficit of India is also expected to lower down due to reduced gold imports, which reached its peak in December in over three years.
As per a GFMS report, in January, gold imports in India were 30 tonnes, as it dropped 37 percent from 47.9 tonnes the same time, last year. Also, the industry was expecting a duty cut in the budget announcement, which prompted gold traders to provide the maximum discount over domestic gold prices in 4 months.
The import duty, however, remained unchanged in the Union Budget announced on February 1, 2018.
Gold Sales in Rural Areas Expected to Rise post Budget Announcement
After the Finance Minister, Mr. Arun Jaitley, announced the revival of certain measures in rural areas nationwide to increase farmers’ income, the Gold prices across these areas are set to go up as expected by jewelers and traders.
The government of India took a huge move to come forward with an all-inclusive gold policy so as to build gold as an asset class and both jewelers and gold traders welcomed it. With this move, the government intends to make India a go-for-gold destination.
Amongst the biggest jewelry and bullion markets, situated in Mumbai’s Zaveri Bazaar, the Mood was positive after the budget announcement. Dealers and jewelers took a sigh of relief, as Jaitley didn’t tweak the 3 percent GST imposed on gold as was firmly expected.
The budget also removed the premium on gold, making it open at $2 discount per troy ounce.
Gold Price Marginally Lower in India
Gold rates in India, recently, saw a price surge with a minor rally seen by the gold price in the global market. This price surge was registered in both 22 Karat gold and 24 Karat gold, as the investment in gold continued to be in a sustained trend. We are likely to see a sustained uptrend in the next a few days.
Since investors continued to show their best interest in the yellow metal, spot gold trading prices stood at $1245 per ounce in the global marketplaces. Investors are proactively showing their interest in bitcoins and equities, and the gold price is unlikely to go downside in the recent days.
The movement of the dollar is quite relevant and the same has been quite week in the last a few days. This could lead to significant drop in the gold price in India – roughly around Rs. 27,000. Gold price in cities like Chennai and Bengaluru is much lower in comparison to the rest of India.
Now, both 22 Karat gold and 24 Karat gold have moved in tandem, in the same direction. Some recent reports by experts and analysts state that there has been increased demand for gold biscuits and gold coins in India.
Indian Bullion Refiners to have Gold Sourcing Standards soon
India is planning on implementing sourcing standard for gold refiners across the country after the new guidelines passed by the Organization for Economic Cooperation and Development (abbreviated as OECD).
The norms for unrefined gold, in the first phase, will stipulate that it’s not imported from gold mines that employ children at the lower level, do fund terrorist activities, or support activities against the nation.
In its first meeting, the working committee decided that the regulatory model will be in line with the LBMA (London Bullion Market Association) and operate under the supervision of the government. Post implementation of these guidelines, Indian gold refiners will be recognized in the International market and efficiently meet the expectations of overseas clients, banks and customers altogether.
Since India holds the largest share of gold in the world (in the region of 25k tonnes), there should be a separate norm because gold sold in India is quite old. Indian bullion refineries have been given time until May 2018 to register themselves with the Bureau of Indian Standards.
Gold Demand in Gujarat Remains Subdued this Wedding Season
The consumption of gold in Gujarat, this wedding season, is recorded to be slow due to the impacts of GST and restricted cash flow ensuring assembly election. Gold traders and jewelers across the city are also not expecting a rise in the demand for the yellow metal.
The secretary of Bullion Federation, based out of Ahmedabad said that the flow of money is being watched closely by the administration. The government is also scanning cash transactions of over Rs. 50,000 and asking for invoices right on the spot. This consequently has slowed down the flow of money across Gujarat. The assembly election is scheduled to take place on 9th and 14th of December.
Not all but some jewelers in the city are offering the doorstep delivery of jewelry to their customers, aiming at eliminating the odds of any problem customers might have to face.
In the fourth quarter of 2016, the demand for gold grew 3 percent to 244 tonnes particularly affected by the prices softening. Gold demand in the fourth quarter of 2017 is expected to be equivalent to that in that last year, particularly in the wedding season, which, however, is certainly better than that during the period of Dhanteras and Diwali.
The 3 percent rise in GST will certainly affect gold demand going forward, as consumers and traders are not yet prepared.
Sovereign Gold Bond Price Fixed at Rs. 2961 per gram
The government of India, on Monday, fixed the per gram price of the brand new series of SGBs (Sovereign Gold Bonds) at Rs. 2,961. Government and the Reserve Bank of India have collectively decided to provide Rs. 50 per gram discount to investors who apply online and make payment digitally.
Arun Jaitley, Finance Minister of India, states that the coming subscription starts on November 13, 2017 and lasts until November 15, 2017 at a fixed price of Rs. 2,961 per gram. The settlement date will be November 20, 2017.
Being a part of the SGB Calendar, announced till December, this round is spread across 12 weeks.
The subscription is open between October 9 and December 27, Monday to Wednesday every week and the settlement can be made on the very first working day of the next week.
The first tranche as per the schedule closed a month ago, i.e. on October 11.
Gold Demand Expected to Increase in India this Wedding Season
The demand for gold in India is expected to see a surge, as the peak wedding season is coming and jewelers across the country are pretty excited to bag a high premium. Recently, gold price in India and China was lackluster while in Singapore, the lure of this precious metal remained quite stable.
India is the second-largest consumer of gold and the ornaments made out of this yellow metal are an essential part of Indian weddings. Jewelers in India charged a premium of $3 per ounce over the official domestic prices, remained unchanged since last week, which includes10 percent import tax.
A Mumbai-based jeweler said that the wedding season has just started in the country. The wedding dates in the next few weeks will boost demand for gold.
As per a dealer with a private sector bank, there has been a fall in gold import by export houses nationwide in the last few weeks. This is why the market is in premium in spite of moderate demand.
For jewelry exporters in India, gold export norms have been tightened, restricting them to export this precious metal while keeping aside its sale it in the domestic market.
Gold Price Dips as Dollar Regains After U.S Senate approves Budget Plan 2018
Gold prices fell on Friday due to the dollar price rose after the U.S Senate gave a green signal to the budget plan for the financial year 2018. This move will ease the way for Republicans to follow a tax-cut package without asking for Democratic support.
Gold price had declined by 0.4% cent to $1,284.06 an ounce by 0700 GMT. It declined 1.6% for the week. The December delivery for US gold futures went down at $1,285.50 per ounce, which is a 0.3% shortfall.
The vote on the budget measure was passed on Thursday by 51 to 49 by the Reupblican-dominated Senate. This will add up to $1.5 trillion to the federal shortfall to pay for the proposed tax cut over the next decade. INTL FCStone analyst Edward Meir predicts that owing to Senate vote, the dollar is up, which in the near future will pave the way for a bill of tax reforms.
The American Central Bank i.e. U.S. Federal Reserve is anticipated to raise its benchmark rate of interest in December for the third time. Higher rates will increase the dollar’s value which in turn will affect the paper-currency dominated gold.
As per sources , US President Trump was in favour of Fed Governor Jerome Powell, as Fed chair had considered on the dollar and supported gold rices. In his recently concluded interviews with the five candidates for the fed chair, he indicated a decision will be announced as early as next week.
While OCBC analyst Barnabas Gan observed that the gold market has been moderately quiet lately.This indicates nothing but that geopolitical risks and changes may influence and boost demand for precious assets such as gold and Japanese Yen.
On the other hand, European Central Bank is all set to start pruning its monthly asset purchases from 60 billion euros to 40 billion by January.
However, all three precious metals saw weekly decline as Silver slipped 0.2 per cent to $17.17 an ounce, while Platinum saw a marginal rise of 0.1 per cent to $922.50 an ounce and palladium rose to 0.5 per cent at $963.25 an ounce.
Gold Imports in India Rise 31% in September, says GFMS
The gold imports in India rose by 31 percent as compared to that last year, as jewelers across the country have hiked their purchases looking ahead at the festival in the month of October.
Being the second largest nation across the worldwide, India is supposed to lend support to global prices that trading close to the highest level, which could eventually lead to the wide trade deficit of the country. As per Sudheesh Nambiath, Senior Analyst at GFMS, the gold imports in India in the month of September were 48 tonnes.
Since gold purchase comes under PMLA (Prevention of Money Laundering Act) began in August, the September figure is reported to be lower as compared to the average monthly purchases of 75 tonnes in 2017. A Mumbai dealer said that the demand was weak in Dussehra because of the PMLA.
The customers had to provide their PAN detail or tax code for purchase transaction(s) of over Rs. 50, 000 and jewelers were required to keep that record for PMLA, which led to buyers’ hesitant and subsequent less sale of gold.
Generally, gold demand rises in the final quarter due to the festivals like Diwali and Dussehra as well as due to the wedding season.
Gold Sales Expected to Skyrocket on Dhanteras as Government Eases the KYC Norms
Those planning to invest in gold on the auspicious occasion of Dhanteras are certainly in for a treat. In a recent move, the government of India eased the KYC norms for buying Gold in India, revealed various sources on the Internet.
According to sources, the government has decided to revoke its orders mandating jewellery dealers to collect PAN and Aadhaar cards details of the buyers purchasing Gold, silver and other jewelleries for more than INR 50,000. This decision was taken in the GST Council meeting held on the 6th of October 2017.
India is one of the world's largest gold consumers and records consumption of around 900-1,000 tonne Gold each year. And a major portion of the import is consumed during Diwali and Dhanteras.
Dhanteras is observed as one of the most auspicious days for purchasing silver gold, jewelleries or other valuables and is celebrated with much aplomb across a large part of the country.
In the wake of these changes, Gold sales are expected to experience an upswing this Diwali. Industry experts are hopeful of a 15% increase in Gold sales as against same period last year. The improvement in Gold sales will definitely be a big relief for Gold sellers who were experiencing consistent losses due to fewer consumers and a steady downfall in Gold rates.
Last Diwali, gold sales witnessed a steep rise of almost 25% owing to the high demand and fairly low Gold rates, reveal online sources.
Gold Might Soon be Excluded from Trade Agreements
As per recent reports, India’s gold imports have almost tripled to $15.24 billion or Rs. 97,665 crore during April-August, as compared to $5.08 billion during the same period last year. Such a surge in gold import has caused alarm in the government, as this spike has worsened the country’s current account deficit.
Government understands that provisions of trade agreements are being abused to import gold at a very low or even zero duty and hence is planning to exclude the precious yellow metal from such trade agreements in future.
The matter has been discussed between the ministries of finance and commerce to negotiate trade agreements, the government official said. As per current rulebook, 10% basic customs duty is charged on gold imports from the countries with which India doesn’t have any trade agreement.
For a period of April-August 2017, the current trade deficit of India is pegged at $63.1bn, which is compared to the $34.3bn for the same period of the last year. Undoubtedly, GST implementation affected the gold imports to go high, leaving the government worried.
Dollar Recovery Shoves Gold Down from One-year High
The gold rate cut down on Monday, after reaching its zenith in over a year, in the last session, as a result of the fast recovery of dollar rates in last week.
It was reported that the gold rate was down 0.7% at 1,337 USD, an ounce by 0053 GMT. It ascended to 1,357.54 on September 8, 2017. It is the highest gold rate since August last year.
Mark To, research head, Hong Kong's Wing Fung Financial Group, said that the major determinates of gold rate last week were the ongoing geopolitical tension. However, no crisis triggering event was noticed and there were fewer chances for the rise in gold prices.
The US dollar, on Monday, won an official pardon from risk aversion, after North Korean dictator Kim Jong Un made a decision to have a party that weekend rather launching another missile. In his recent speech, Mark To said that he has planner to go long on the dollar for a week or more but not for too long. The reason he mentioned was the major determinates, whereas the tensions related to geopolitical tensions are there. He also mentioned that slowing of the hike in interest rate and other reduction measures are going to be with them as well.
Gold Rate in India Slips Due to Dollar Bounces Back
Gold price in India has a significant impact on the gold market and it tends to fluctuate rapidly. As per the recent report, gold rate in India is set to witness a fall owing to a firm Dollar. As Dollar increased after a positive US economic data, it has contributed to a fall in gold price in India by 0.4% and traded around 1,302 USD per ounce. As we already know, the foreign markets have a momentous influence on Indian gold price and since August last year, dollar went up by 0.3Y to 111.615, which was the strongest.
The recent meet between USA, North Korea and Central Bank on gold ended on a negative note. However, despite this negative sign, gold rate this month is quite at a higher side. The latest gold price indicates that this time gold prices are trading at 29,000 and this is an elevated rate as compared to the regular gold rate in India.
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