The famed Indian appetite for gold is being manifest with renewed vigour this season as a surge in festival demand and a recent fall in prices has fuelled a virtual 'gold rush' in the market.
The gold market has remained under pressure.
Traders in India, the world's largest gold consumer, were stocking up on the precious metal on Monday amid fears that a US-led war with Iraq was imminent and could push bullion prices higher, dealers said.\n\n\n\n
Geopolitical tensions in different parts of the globe and slowdown in global economy led investors to opt for safe-haven like gold over the last one year.
While gold surged by Rs 275 to Rs 27,300 per 10 grams, silver gained Rs 295 to Rs 40,730 per kg on increased offtake by jewellers and industrial units.
While the American Club Cool Fresh Taste saw the minimum hike of 10 per cent, from Rs 200 to Rs 220 for a pack of 20 cigarettes, the price of Navy Cut Filter rose by about 16 per cent, at Rs 80 for a pack of 10 sticks. Flake Filter has become costlier by 14 per cent at Rs 80, while prices of Flake Special Filter, Flake Blue Special Filter and Wave Cool Mint rose by 20 per cent.
After losing Rs 730 in last six sessions after the Reserve Bank of India eased imports curbs by scrapping 80:20 scheme, gold staged a strong comeback by rising Rs 840 to close at Rs 27,040 per ten grams, a level last seen on October 30.
India is the largest importer of gold after China.
A committee has been formed and the price situation was being reviewed, the finance minister added.
The surge comes at a time when Chinese investors look for insurance against rising inflation and currency appreciation, the Financial Times reported.
Silver also saw a hefty rise of Rs 900 to Rs 42,100 per kg on increased offtake by industrial units and coin makers.
The decline is mainly due to the record high prices that dampened consumer demand, Bombay Bullion Association director Suresh Hundia said, adding volume of shipment also declined in October as the festival demand is no longer there.
Silver also rose further by Rs 100 to Rs 37,600 per kg.
Gold surged by Rs 325 to trade at over three-month high of Rs 27,890 per 10 grams at the bullion market on Thursday.
Gold zoomed by Rs 425 to Rs 31,150 per ten grams in the national capital today on frantic buying by stockists and investors on strong global cues.
Traders said brisk buying by stockists for the ongoing wedding season mainly led an upsurge in precious metal prices.
Based on the estimate, a courier bringing in 1 kg of gold currently worth around $40,000 at world prices could earn $470 if not caught.
India has been struggling to control the current account deficit that hit an all-time high of 6.7 percent of GDP in the December quarter.
Bullion merchants said increased buying by jewellers and retailers to meet wedding season demand and a firming trend overseas where gold surged to one-month high, mainly boosted the sentiment.
Gold imports surged by 93.86 per cent year-on-year to $4.98 billion.
Traders said appreciating rupee against the American currency made imports of dollar denominated precious metal cheaper, which mainly kept pressure on bullion prices.
A number of companies, including Maruti Suzuki, Renault and Nissan, are giving gold coins to buyers who book cars by the month-end. There are other benefits as well, reports Ajay Modi.
Gold rose by Rs 190 to Rs 31,350 per ten grams in the national capital on Thursday as stockists and retailers remained net buyers of the precious metal for the marriage season amid a firming global trend.
In August 2013, import duties on gold, silver and platinum were hiked to 10 per cent in order to curb the surging imports and also to check CAD.
Prices have remained lower this year.
While gold surged Rs 200 to Rs 21,420 per 10 gm on rising seasonal demand, silver rose by Rs 1,250 to Rs 54,450 per kg on heavy buying by stockists and industrial units, amid firm global cues.
The all-time high price of silver is Rs 75,000 a kg, recorded in April 2011.
Gold was among the least bruised by Monday's selloff, dropping half a percent versus a 6 percent slide in Brent crude and a 2 percent decline in copper.
Replaces China as imports more than double to 204 tonnes in September quarter, with demand up 39%.
The government has hiked import duty on gold three times in a year and recently raised it by 2 per cent to 8 per cent to curb demand.
Gold gained Rs 220 on Tuesday.
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Earlier, similar restrictions were imposed on commercial banks.
India's biggest jewellers' association has asked members to stop selling gold bars and coins.
Images from the World Athletics Championships in Budapest on Saturday.
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After gaining Rs 235 in last three sessions, gold further spurted by Rs 465 to Rs 31,450 per ten grams, a level last seen on December 12.
Import in the first nine months of the current calendar year fell 20 per cent to 525 tonnes from 658 tonnes in the year-ago period.
The precious metal had gained Rs 325 in the previous two sessions.
Dangal's and Shemaroo's entry shows there is ad-supported gold at the bottom of the Indian consumer pyramid if you can keep the costs low.
The short-term risk to our external balances stems from the yellow metal.
Policymakers have been grappling with high prices for food staples such as onions and potatoes even after the central bank raised interest rates by a quarter percentage point in each of its previous two reviews.
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