Both gold and silver tumbled on the bullion market on Thursday on fresh selling by stockists and weak global trend, recording substantial losses.
Surging capital markets in India are turning investors away from the bullion market to attractive stocks. This has resulted in the fall of gold prices on lack of buying supporters.
Globally, gold was trading 0.35 per cent lower at $1,267.20 an ounce in Singapore.
D Subbarao reiterated concerns over rising gold imports and its pressure on current account deficit.
India struck gold not once but twice in their maiden appearance at the Winner International Boxing Tournament with Paramjeet Samota (+91kg) and teen sensation Shiva Thapa (56kg) finishing on top in the finals in Belgrade, Serbia.
Gold rebounds after 3-day fall on renewed demand, global cues.
Most consumers are going for token buying of lesser value and are waiting for price correction for purchase of wedding jewellery.
Gold prices surged by Rs 150 to trade at Rs 17,140 per ten gram in New Delhi on heavy buying due to a steep rise in the metal's prices in the overseas market as the dollar weakened.
Traders said stockists selling in line with a weak global trend as an improving US economy prompted the Federal Reserve to cut stimulus, which reduced demand for precious metals as alternative assets.
At the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 20 each to Rs 30,180 and Rs 29,980 per ten grams, respectively.
Indian demand fell 26 percent to 190.3 tonnes in the first quarter of 2014 from the same period a year earlier.
Bullion traders attributed the rise in precious metal prices to emergence of buying by jewellers and retailers driven by ongoing 'Navratras', considered as an auspicious week for making new purchases according to Hindu mythology.
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Gold prices ruled steady at Rs 27,250 per 10 grams in restricted activity at the bullion market on Monday.
In the first phase the yellow metal sold in four metro-Delhi Mumbai Kolkata and Chennai would compulsorily have hallmarking, assuring the purity, while the rest of the country would have to implement the norms in the next few months.India consumes on an average 800 tonnes of gold each year.
While the gold policy covers every aspect, from sourcing gold to trading and investing in it, experts assert that the policy is incomplete if mining of gold in India isn't promoted.
Bullion traders said besides ongoing wedding season demand, a firm global trend as the weakening in dollar revived the appeal of the metal as an alternative investment, mainly boosted the sentiment.
Traders said sustained selling by stockists against sluggish demand amid a weakening global trend, where gold dropped below $1,200 an ounce as the Federal Reserve scaled back monetary stimulus, mainly kept pressure on precious metals.
According to data compiled by London-based Gold Field Minerals Services (GFMS) for the World Gold Council (WGC), the combination of a robust economy and buoyant stock market helped fuel purchases of the metal during the first eight to nine months of the year, despite gold breaching the psychologically significant level of Rs 9,000 per 10 grams in September.
Reliance Money, investment product distribution arm of Anil Dhirubhai Ambani Group, is foraying into retailing of its own brand of gold coins, which would be made exclusively by Swiss precious metal refining major Valcambi.
Traders said besides reduced offtake by stockists and jewellers in view of off-marriage season, weak trend in global markets mainly led to the fall in gold and silver prices.
Round-tipping creates the opportunity for exporters to source funds at a much cheaper cost, which they divert to some other business.
Tariff value is the base price on which the customs duty is determined to prevent under -invoicing.
The rule required firms to mandatorily export 20 per cent of the gold they had imported.
The yellow metal has risen 6.6 per cent since mid-August
Silver coins remained steady at Rs 52,000.
Continued its slide for the sixth straight day, gold prices plunged by Rs 220 to trade at three-week low of Rs 28,280 per 10 grams in New Delhi on Thursday on increased selling by stockists amid a weakening global trend.
After demonetisation, demand jumped as many people with unaccounted money bought the yellow metal.
Bullion traders said subdued demand at current levels and a weak global trend mainly pulled down both gold and silver prices.
Consumers during the quarter sold 37.9 tonnes of old gold, which is the highest quarterly sale after September 2016, when old gold sale, or scrap supply, was 39 tonnes.
Gold import in the December quarter is estimated to come down.
The Association of Gold Loan Companies on Monday said it had advised members to reduce their maximum lending rate following the decline in the price of the yellow metal.
Gold fell by Rs 170 to Rs 31,680 per ten grams in the national capital on Monday on stockists selling on the back of sluggish demand amid weak global trend.
Gold prices maintained its upward journey for the second day with a gain of another Rs 180 to Rs 27,300 per 10 gm on Monday.
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Silver also recorded a significant rise of Rs 950 to Rs 38,750 per kg.
China produced the most gold in world last year, making it the largest producer for the sixth straight year even as it remained the second largest consumer of the yellow metal after India.
It should always be remembered that investment in physical gold must always be in the form of coins/bars and should be in addition to the jewellery held by the household.
The import tariff value is the base price at which the customs duty is determined.
