15% of India's gold this year is likely to be smuggled in or arrive via other unofficial channels to beat a 10% levy imposed by the government
Gold prices recovered by Rs 40 to Rs 26,800 per ten gram at the bullion market in in New Delhi on Tuesday on scattered buying by jewellers and retailers to meet ongoing wedding season demand and a firming global trend.
Gold pries surged to a record high at Rs 11,840 per 10 gram on Monday owing to brisk buying by major market players, who were enthused by firming global trend, and some investors' shifting focus from melting stock markets to the bullion mart. The market remained in bullish mood with gold remaining on record-setting spree as investors shifted a part of their funds from weakening stock markets to gold as the metal offers a safe haven for investments, traders said.
The RBI banned imports on a consignment basis, making it difficult for jewellers to source raw material.
Silver coins continued to be sought after at the last level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.
Selling pressure gathered momentum after gold in London fell for a fifth session as the dollar strengthened, curbing demand for the metal as an alternative investment. Marketmen said the metal lost its demand among retail customers and moved along with the global trend.
Silver also dropped by Rs 400 to Rs 35,650 per kg.
Kotak Mahindra Bank aims to sell 100 kg of gold through its retail business before Diwali. \n\n
The Forbes' annual ranking of fiction's very wealthiest.
A downturn in Indian demand could hit global gold prices.
Gold prices declined by Rs 50 to Rs 28,270 per ten grams in New Delhi on Monday on slackened demand from jewellers at prevailing levels amid a weak trend in global markets.
The State Bank of India said on Monday it would launch a gold exchange traded fund in 2008. "We are examining this product in our mutual fund company and we are hopeful we should be able to come out with an ETF next year," O P Bhatt, SBI chairman said at a conference in Mumbai.
Snapping its four-day losing streak, gold rebounded by Rs 100 to Rs 27,070 per ten grams at the bullion market on Wednesday.
The spot gold price has gained 6 per cent this month after closing September in the high $730s. In just two months, gold has amassed 15 per cent in gains, up nearly 25 per cent so far this year. Analysts, however, say the market could be getting overheated and in need of a correction. Jon Nadler of Kitco.com agreed, telling traders to "stay on the alert for another arm-wrestling session between the profit-takers and the buyers out there."
Silver also slumped by Rs 1,700 to Rs 37,200 per kg.
Duty changes in the Budget make refining unviable.
In the national capital, gold of 99.9 and 99.5 per cent purity rebounded by Rs 320 each to Rs 31,820 and Rs 31,620 per ten grams, respectively.
Conversion into jewellery during redemption would entail 15-20% wastage and making charges, rendering the scheme inefficient
Bullion traders said sustained buying by jewellery fabricators and retailers to meet the festive season demand mainly kept precious metal prices higher.
'The government can increase import duty on gold by 1 per cent, instead of imposing excise duty.'
Snapping its two-day losing streak, gold prices on Wednesday rebounded by Rs 120 to Rs 28,420 per ten grams at the bullion market in New Delhi on revival of buying by jewellers to meet ongoing wedding season demand even as metal retreated overseas.
Silver followed suit, which traded lower by Rs 260 to Rs 38,540 per kg.
Gold in New York, which normally sets price trend on the domestic front, fell by 0.39 per cent to $1,280.80 an ounce.
Actress Rakhi Sawant, who has jumped into poll fray while claiming to be an "illiterate" person with assets of Rs 15 crore, has outstanding loans worth about Rs 2.5 crore and an additional Rs 72.5 lakh tax liability.
Gold prices plunged by Rs 220 to Rs 27,350 per ten grams at the bullion market in New Delhi on Thursday, snapping a four-day rising streak, owing to slackened demand at prevailing higher levels amid a weak global trend.
Globally, gold fell by 1.32 per cent to $1,125.40 an ounce and silver by 3.98 per cent to $14.11 an ounce in New York in yesterday's trade.
Gold in New York, which normally set price trend on the domestic front, rose by 0.2 per cent to $1,186.20 an ounce and silver by 1.1 per cent to $15.76 an ounce in Thursday's trade.
Marketmen said besides low demand from jewellers and retailers at prevailing levels, a weak global trend as the dollar touched a five-year high, damping investor demand for the metal as a safe-haven, weighed on gold prices.
Silver, however, met with resistance and traded lower by Rs 200.
Gold in Singapore, which normally determines price trend on the domestic front, traded a shade higher at $1,310.85 an ounce and silver by 0.70 per cent to $20.56 an ounce in on Tuesday's trade.
Gold prices rose by Rs 190 to Rs 27,190 per 10 grams at the bullion market on Friday.
Bullion traders said besides increased buying by jewellers and retailers to meet festive season demand, a firming global trend amid escalating tensions over Ukraine has raised demand for a safe-haven, resulting into influence on gold prices here too.
Bullion merchants said besides increased buying by jewellers and retailers to meet festive season demand, costlier imports due to weakening of the rupee, led to the rise in gold prices.
Gold prices recovered by Rs 100 to trade at Rs 27,200 per 10 gm at the bullion market.
The bullish outlook for gold is seen as a trigger for silver to perform better going ahead.
Silver also eased by Rs 200 to Rs 38,200 per kg on reduced offtake by industrial units and coin makers.
Gold had hit an all-time high of Rs 11,492 on the Multi Commodity Exchange, the largest commodity bourse. The gold contract has gone up more than 7 per cent so far in 2008. Traders said the demand for gold is dull, as many people are expecting that the prices will come down.
The turnovers of gold, silver and agri commodities like guar seed and chana are much more than that of blue chips traded on the Bombay Stock Exchange.
Silver also found buying support and gained Rs 150 to Rs 37,350 per kg.
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