- Gold prices in India include 10.75% import duty and 3% GST
- Jewellers were busy closing their books while rising cornavirus cases also made them cautious
Earlier this month, gold had declined to near one-year low levels of ?44,150.
Citing gold dealers, Reuters reported that gold activity in India remained muted this week as the country's financial year was coming to a close with jewellers busy with closing the books. Jewellers also remained cautious amid rising coronavirus cases. The Indian fiscal year runs from April to March. Dealers charged premiums of up to $5 an ounce over official domestic prices, down from last week's $6.
While US dollar and bond yields continue to sway gold, supporting price at lower levels is renewed virus concerns which have forced countries to impose stricter measures, Kotak Securities said in a note. Gold is also being supported by uneven global economic recovery and dovish stance of Fed and other major central banks, it added.
Outflows from gold ETFs also continue to weigh on gold prices. The world's biggest gold-backed exchange traded fund, SPDR Gold Trust, has seen outflows of more than 140 tonnes so far this year.
Gold has been trading in a sideways to negative trend from past many days, says Kshitij Purohit, Lead – International & Commodity at CapitalVia Investment Advisor. Support for MCX gold is seen at ?44400-44200 levels while resistance at gold ?45600, he added.
A firmer dollar, rising yields and a rally in equity markets have been pressuring gold. A stronger dollar makes holding greenback-denominated bullion more expensive for those holding other currencies, while higher yields raise the non-yielding metal's opportunity cost.
By Livemint
Source: Livemint
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