For the first time, consumers, including those at the so-called bottom of the pyramid, are monetising gold by taking loans from banks, offering the yellow metal as collateral, says Tamal Bandyopadhyay.
Traders said sentiment turned distinctly weak after gold prices slumped in global markets as Swiss voters rejected a plan for their central bank to accumulate bullion and oil extended its decline to five-year low, curbing demand for the precious metal.
Global gold prices held below $1,200 an ounce this week.
Silver also dropped Rs 560 to Rs 36,440 per kg.
Silver settled at Rs 37,280 per kg after firming up by Rs 230.
Silver, however, held steady at Rs 37,100 per kg
You can use gold as a financial instrument to diversify your portfolio into hedging against uncertainties in the market, but for ambitious returns, you must explore opportunities in other asset classes such as equities, debts and real estate, says Adhil Shetty, CEO, BankBazaar.com.
Traders attributed the recovery in gold prices to a better trend in global markets.
Prospects of a bumper kharif harvest are expected to lower food inflation in the coming months, making the country's inflation outlook benign, the Union Ministry of Finance (FinMin) said in its monthly economic report for October released on Monday.
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.
A garland presented to Mahatma Gandhi during the iconic Dandi March of the Indian freedom struggle in 1930 failed to meet its estimated price at a UK auction. The garland, which was presented to Gandhi by the wife of his personal physician, Dr Balvantrai N Kanuga, was offered as part of an "Islamic and Indian Art" sale by Lyon & Turnbull in London. Despite failing to find a buyer at the auction, the auction house said it has received significant interest since the sale and hopes to sell it to the highest bidder.
Gold falls on muted demand, silver shapes up on fresh buying.
Silver, however, remained steady at Rs 37,200 per kg.
'The long-term impact of elections is minimal.'
Regaining the lost sheen, sales of gold jewellery and coins are set to touch pre-COVID levels in volume terms on the auspicious Dhanteras as easing pandemic concerns and pent up demand saw consumers flocking to stores to buy the precious metal. Increased footfall at stores and brisk sales online as well as relatively softer gold prices compared to record Rs 57,000 per 10 grams level in August spurred increased buying, especially light weight offerings, on Tuesday. Dhanteras is considered to be auspicious for buying precious metals and other valuable items.
The second day of pre-Diwali Dhanteras witnessed a tepid response from shoppers on Friday as gold and silver sales have likely to be fallen by up to 35 per cent year-on-year due to high prices and COVID-19 induced financial distress, although consumers moved to online buying to make most of the festival, jewellers said. The buying was heavily restricted to light weight jewellery, coins and precious stones due to lower purchasing power and high gold rates, they said. Due to the fear of coronavirus infection, many customers who had booked in advance were taking delivery of wedding orders on Friday, while some were seen buying safely through online brands like Tanishq and Melorra.
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
Scattered low level buying by retailers helped gold prices to trade marginally higher.
Gold prices resumed the day on a historic high at the bullion market in Mumbai on Thursday, with standard gold (99.5 purity) opening at Rs 6675 per ounce, a level not seen before.
In dollar terms, however, gold prices jumped by 26 per cent this calendar year, following sharp jump in hedge funds' long position
The global official gold holdings totaled 31,694.8 tonnes as of April 2013.
Globally, gold traded a shade higher at $1,210.15 an ounce.
Silver also recovered by Rs 250 to Rs 37,300 per kg.
Silver also dropped by Rs 1,490 to trade below Rs 40,000 at Rs 39,010 per kg on poor offtake by jewellers and coins makers.
Silver rose by Rs 50 to Rs 36,050.
Gold prices have hit a record high of Rs 26,000 per 10 grams for the first time ever.
Muthoot offers 13-13.4 per cent annual interest on the NCDs, close to one per cent higher than previous public offer.
Silver met with resistance and fell by Rs 200 to Rs 36,000 per kg.
At a time when the whole world is going ga-ga over stocks and debt is too easy to borrow, do not forget gold, says Anil Rego.
Traders said slackened demand from jewellers and appreciating rupee, which made import of precious metal cheaper, weighed on gold prices but a better trend in the global markets restricted the losses.
Traders said in the absence of buying support from jewellers and retailers on expectations that prices will come down in coming days mainly kept gold prices steady.
In August 2014, imports stood at $ 2.06 billion. Higher imports will have adverse bearing on India's current account deficit (CAD).
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.
Globally, gold climbed 0.7 per cent to $1,161.85 an ounce in Singapore.
Globally, gold was trading 0.35 per cent lower at $1,267.20 an ounce in Singapore.
In Singapore, gold prices have risen by 0.46 per cent to $ 1,294.20 from $ 1,288 per ounce in last one fortnight.
The government on Monday reduced the import tariff value of gold to $458 per 10 grams due to fall in its global prices.
Investors pumped in a record Rs 40,608 crore into equity mutual funds in June, 17 per cent higher than in May 2024, industry body Amfi said on Tuesday. The flows into the systematic investment plans (SIPs) also reached a new high at Rs 21,262 crore for the month, which was higher than the previous high of Rs 20,904 crore recorded in May, it said. The net assets under management (AUM) for the entire MF industry on equity schemes stood at Rs 27.67 lakh crore, while the same from SIPs was Rs 12.43 lakh crore, the body said.
Gold prices breached the crucial Rs 25,000-level for the first time ever in history, tracking strong trends in global markets where financial uncertainty increased the metal's appeal as a safe investment haven.
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