On a weekly basis, gold prices in India about ?2,600 per 10 gram
Gold prices in India include import duty and GST
In India, premiums on gold over international prices eased this week, in line with a fall in prices. Premiums eased to about $2 an ounce over official domestic prices from $4 last week, Reuters reported. Domestic gold prices include import duty and GST. In the futures market, gold prices fell 1.4% to ₹52,170 on Friday, in tandem with a drop in global rates.
In India, retail gold demand has been subdued due to coronavirus crisis and soaring prices. Despite weak demand, limited supplies due to suspension of international flights has been allowing dealers to charge premiums, say analysts.
However, investment demand of gold held strong last month. Gold ETFs attracted inflows of ₹ ₹921 crore in July as compared to ₹494 crore witnessed in June.
But the recent price volatility could impact the investment demand of gold, Reuters reported, citing a gold wholesaler.
On a weekly basis, gold prices in India fell ₹2,600 per 10 gram. And as compared to recent highs of about ₹56,000 prices are down ₹4,000.
In global markets, gold posted its first weekly drop in more than two months amid rising US bond yields and profit-taking. Spot gold fell 0.4% to $1,945.12 an ounce on Friday, ending the week down about 4.5%. Even with this decline, gold is still up 28% this year. A logjam over a US stimulus bill also hurt gold.
Higher yields increase the opportunity cost of holding non-yielding assets such as gold. (With Agency Inputs)
