The government on Monday reduced import tariff value on gold to $388 per 10 grams and on silver to $540 per kg, following global price trends.
Marketmen said fall in demand from jewellers and retailers at prevailing higher levels and a weak global trend mainly led to the fall in gold and silver prices.
With only days left for Diwali, gold prices scaled a new high of Rs 16,250 per 10 gram on hectic buying by stockists to meet the enhanced festival demand from retailers and fabricators.
Shares of gold loan companies like Manappuram Finance and jewellery makers on Monday fell sharply by up to over 13 per cent, following weakness in gold prices which hit over 15-month low.
Gold prices fell by Rs 30 to Rs 27,160 per 10 grams at the bullion market on Saturday.
Gold in Singapore, which normally sets price trend on the domestic front, dropped by 0.4 per cent to $1,283.28 an ounce after data showed that US employers added more jobs than expected which reduced demand for the metal as an alternate investment.
Despite multiple headwinds at the start of 2023, the Indian markets delivered a strong performance, posting 19-20 per cent growth for the year. Even as new records were set, investor sentiment remains strong going into 2024, given the lower inflation, expectations of steady to lower interest rates, higher economic growth, and strong inflows. However, the overriding concern for most brokerages is valuations.
The government on Monday slashed import tariff value on gold and silver to $408 per 10 grams and $617 per kg respectively, in view of weakness in bullion prices globally.
Many are selling stocks and corporate bonds and putting their money into gold.
Gold in New York, which normally determine a price trend on the domestic front, fell 0.40 per cent to $1,233.70 an ounce in Tuesday's trade.
The initial public offering (IPO) market has seen some momentum of late with robust responses to recent issues. However, only some have been able to ride the wave. So far in 2023, 23 companies have let their approval granted by the markets regulator - the Securities and Exchange Board of India (Sebi) - lapse.
Gold prices surged to set a new peak at Rs 8,890 per ten gram on the bullion market on Thursday on aggressive buying by stockists to meet the current marriage season demand.
Silver also eased by Rs 200 to Rs 38,200 per kg on reduced offtake by industrial units and coin makers.
In 2013-14, the funds witnessed outflow of Rs 2,293 crore
While gold declined by Rs 50 to Rs 28,750 per ten grams, silver dipped by Rs 25 to Rs 42,075 per kg on lack of buying support.
The yellow metal has risen 6.6 per cent since mid-August
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.
Sentiments remained bullish as gold rose to a two-week high in overseas markets, gaining with other commodities as the dollar weakened, after the US Congress passed the 'fiscal cliff' deal, easing concern that a recovery in the world's biggest economy may be derailed.
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Traders said some local buying mainly helped both gold and silver prices to recover some ground.
The London-based global precious metals consultancy firm, however, warned that the rally may not be straight as a summer lull or the need for inflationary pressures to build could result in a period of sub-$900 prices in the short term.
Sentiment turned bearish in the absence of buying support.
Gold will first slide to $1,310-1,325 early next year on profit booking. But, the precious metal will get good buying support from central banks in Asia and West Asia regions, who are looking for opportunities to increase their gold portfolio.
Gold prices plunged by Rs 200 to trade at Rs 27,000 per 10 grams at the bullion market on Thursday.
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