Gold prices today at Rs 53,350 per 10 gm, silver trends at Rs 62,000 a kg

 Gold prices today remained stable at Rs 53,350 per 10 gm, while silver was trending at Rs 62,000 per kg, according to the Good Returns website.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

In New Delhi, the price of 22-carat gold remained at Rs 49,400 per 10 gm, and in Chennai, it climbed to Rs 48,450. In Mumbai, the rate was Rs 49,420 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 52,850 per 10 gm.

On the MCX, October gold futures jumped 0.20 per cent to Rs 50,526 per 10 gm, while silver December futures were at Rs 60,571 per kg.

Gold prices rose by Rs 454 to Rs 51,879 per 10 gram in the national capital on Tuesday amid rupee depreciation, according to HDFC Securities. The precious metal had closed at Rs 51,425 per 10 gram in the previous trade. Silver prices also jumped Rs 751 to Rs 63,127 per kilogram from Rs 62,376 per kilogram in the previous trade.

"Spot gold prices for 24 carat in Delhi were up Rs 454 amid rupee depreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said. The rupee pared initial gains and settled for the day 17 paise lower at 73.46 (provisional) against the US dollar on Tuesday.

In the international market, gold was trading marginally lower at USD 1,910 per ounce, while silver was quoting flat at USD 24.25 per ounce.

Gold prices fall 1% as global stimulus hopes boost riskier assets

Gold prices fell 1 per cent on Tuesday, retreating from the last session's jump above the key $1,700 level, as hopes for global stimulus measures to cushion the economic impact of the coronavirus outbreak lifted riskier assets and the dollar.

Spot gold declined 0.7 per cent to $1,668.24 per ounce by 0304 GMT, having touched its highest since December 2012 at $1,702.56 on Monday on mounting concerns over the global spread of the virus. US gold futures lost 0.4 per cent to $1,668.50.

"Markets are getting a little bit edgy. Risk is turning on due to the fiscal policy measures out of the United States and Japan, which is negative for gold over the short term," said Stephen Innes, chief market strategist at AxiCorp.

US President Donald Trump said he will be taking "major" steps to gird the economy against the outbreak's impact and discuss a payroll tax cut with congressional Republicans.

Japanese Economy Minister said the global spread of the virus was affecting the domestic economy significantly, and that the government would adopt necessary and adequate steps without hesitation.

A senior official from Japan's Ministry of Finance said they are in contact with the Trump administration, who are compiling an economic package.

"This is just the beginning of the so called domino effect and I would expect the rest of Asian governments to follow in lock steps with similar packages," Innes said.

Asian shares bounced and bond yields rose from historic lows, while the dollar rose 0.5 per cent against key rivals, making gold costlier for investors using other currencies. The safe-haven yen retreated from a more than three-year high touched in the previous session.

The significant fiscal response of the United States might alleviate investor concerns about the economic growth outlook, which is negative for bullion, said Michael McCarthy, chief market strategist at CMC Markets.

Meanwhile, Italy ordered everyone across the country not to move around other than for work and emergencies, while banning all public gatherings. The total number of coronavirus infected people touched 111,600 globally by Monday, including 80,754 in Mainland China.

Palladium rose 0.9 per cent to $2,513.63 per ounce, having touched a near one-month low in the previous session.

Silver gained 0.2 per cent to $17.01 per ounce, while platinum rose 1.3 per cent to $873.58.

 

Gold prices surge 2% in domestic markets to new high on global cues

Gold prices jumped 2 per cent in the domestic markets to a new high, on Friday, following global cues. This led to domestic consumers staying away from fresh purchases, with even scheme- and exchange-related customers deferring transactions to avoid high making charges.

Standard gold in Mumbai’s Zaveri bazaar rose to Rs 42,400 per 10gm in spot trade. While most retail shops in Zaveri bazaar were shut for Mahashivratri on Friday, the ones that were open did not witness any footfall.

“There is no business, perhaps because of the sudden spike in gold prices. Even monthly deposit scheme and exchange-related customers were absent,” said Kumar Jain, director at Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer in Zaveri bazaar.

Gold prices in India have jumped 8.5 per cent in CY20 so far, and a staggering 26 per cent in the last one year following the rise in global markets. In the benchmark London spot market, gold was trading at $1,639 an oz — the highest in seven years — in early trade, on fears of falling dollar interest rates and monetary easing by China and Japan, which has raised gold’s safe haven appeal.

US Global Investors’ CEO Frank Holmes does not rule out prices to hit $1,900/oz in the medium term and hence recommends investors to buy more gold and silver.

“The falling interest rate cycle has always supported a rise in gold prices. While the minutes of the Federal Open Market Committee in the US are yet to be out, concerns remain on the interest rate cut in CY20. In such circumstances, investors remain bullish on gold,” said Ajay Kedia, managing director of Kedia Commodity.

Interestingly, the rally in US equities took a pause and dollar has become stronger and hit its highest levels in three years against a basket of currencies on Thursday. The yen slid on economic stimulus, which questioned the Japanese currency as a safe haven.

The dollar has risen almost 2 per cent since Tuesday against the yen, reaching its highest in almost 10 months, while it has climbed to a near three-year high against the euro.

Kishore Narne, associate director at Motilal Oswal Financial Services, forecasts prices to hit $1,730/oz in the medium term, translating into a price of Rs 45,000 per 10gm.

“Expectations of further monetary easing and falling interest rates are two key positives for prices to further rise,” said Narne.

While a $250-billion stimulus to deal with coronavirus outbreak has been announced by China to prevent its economy from slowing down, analysts forecast further monetary easing. Japan has already done it recently. Further, with the Brexit date nearing, the UK may proceed with monetary easing.

Gold steady after one-week peak as virus fears offset uptick in equities

Gold prices held steady on Tuesday after climbing to a one-week peak in the previous session, as concerns about the coronavirus epidemic that has claimed more than 1,000 lives in China offset an uptick in equities.

FUNDAMENTALS

** Spot gold was little changed at $1,570.98 per ounce by 0041 GMT. The metal touched its highest since Feb. 4 at $1,576.76 on Monday. US gold futures fell 0.3% to $1,574.60.

** Asian shares inched higher on Tuesday, after US stocks hit a record peak overnight, as investors assessed how quickly China's factories could return to work as the coronavirus continues to spread and deaths mount. [MKTS/GLOB]

** The US dollar and Japanese yen were in demand as worries about the spread of the coronavirus sent investors to safe harbours. [USD/]

** The US economy is in good shape and the Federal Reserve should hold rates steady for the time being, Philadelphia Federal Reserve Bank President Patrick Harker said on Monday.

** China's Hubei province, the epicentre of a coronavirus outbreak, reported 2,097 new cases and 103 new deaths on Feb. 10, the local health authority said on Tuesday.

** The World Bank is offering technical assistance to China to help battle the coronavirus epidemic but no new loans, the development lender's president, David Malpass, said on Monday.

** More than 300 Chinese firms are seeking bank loans totalling at least 57.4 billion yuan ($8.2 billion) to soften the impact of the coronavirus, two banking sources said.

** Shanta Gold said it had acquired Barrick subsidiary Acacia Exploration's project in southwestern Kenya in a $14.5 million deal which gives the Tanzania-focused miner its first asset outside the country.

** Palladium remained unchanged at $2,353.00 an ounce, silver was flat at $17.75, and platinum edged higher by 0.3% to $963.19.

Gold zooms to Rs 40,652 per 10 gm on strong global trends, weak rupee

Gold prices zoomed Rs 752 to Rs 40,652 per 10 gram in the national capital on Friday on strong global trend and weak rupee, according to HDFC Securities.

Similarly, silver prices also jumped Rs 960 to Rs 48,870 per kg from Rs 47,910 per kg in the previous trade.

Gold had closed at Rs 39,900 per 10 gram on Thursday.

"Taking cues from global prices and weaker rupee, spot gold for 24 Karat in Delhi quoted at Rs 40,652 per 10 grams," HDFC securities Head - Advisory (PCG) Devarsh Vakil said.

In early trade on Friday, the rupee depreciated by 24 paise to 71.62 weighed by spike in crude oil prices, after US President Donald Trump ordered deadly strike on an Iranian commander.

In the global market, both gold and silver depicted a bullish trend, quoting with gains at USD 1,547 per ounce and USD 18.20 per ounce, respectively.

"Gold prices traded higher today as geopolitical tension triggered the safe haven buying in international rates," Vakil added.

General Qasem Soleimani, the powerful commander of Iran's Revolutionary Guards, was killed in a precision US air strike in Iraq ordered by President Donald Trump, the Pentagon announced on Friday, dramatically escalating tensions in the strategic Gulf region.

According to Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services, "Gold prices shot up amidst rise in Middle-East tensions.

Gold, silver prices rise marginally as rupee falls 11 paise against dollar

Gold prices appreciated by Rs 38 to Rs 39,892 per 10 gram in the national capital on Thursday, mainly supported by weaker rupee, according to HDFC Securities.

On the first day of the new year trade, the yellow metal had closed at Rs 39,854 per 10 gram.

Silver prices also gained by Rs 21 to Rs 47,781 per kg, compared to Rs 47,760 per kg in the previous trade.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said spot gold for 24 karat in Delhi were trading marginally up by Rs 38 supported by weaker rupee.

The rupee fell 11 paise to 71.33 against the US dollar (intra-day).

In the global market, gold quoted at $1,520 per ounce and silver at $17.85 per ounce.

Gold rises for the seventh day to hit all-time high, new orders on hold

Gold prices rose for the seventh day, adding 0.7 per cent in the Mumbai spot market on Tuesday to hit a new all-time high, prompting consumers to stay away from fresh orders. Standard gold has risen by 3 per cent and silver by 6 per cent in Mumbai’s Zaveri Bazaar in the last 10 days. While standard gold price closed at Rs 39,083/10 g, silver ended the day at Rs 46,665/kg. Gold is getting support in both the domestic and the international markets.

Airports to railway stations: Gold smuggling peaks in India as prices climb

Surging gold prices in India are keeping customs officials on their toes.

Illegal inflows have jumped after the Indian government increased import taxes in July and prices surged to record highs in September. Customs officials have arrested people for attempting to smuggle in gold by concealing it in bags, clothes and their rectums. On one flight alone, officials caught 30 passengers trying to smuggle in 7.5 kg of gold into Chennai.

“The propensity to smuggle now is very high because every time you increase the tax rate, you give that much more incentive to smugglers,” P.R. Somasundaram, managing director for the region at the World Gold Council, said in an interview. “So it will continue like this unless measures are taken by not just the government but also the trade which shares an equal responsibility to obliterate the grey market.”

Gold in India touched a record high of Rs 39,885 per 10 grams in early September on higher import taxes and as the U.S-China trade conflict and looser monetary policy boosted global benchmark spot prices. While bullion has since retreated from the all-time high, it’s still up 20% this year.

Smuggled inflows of gold may jump 30% to 40% this year to 140 tons and rise more in 2020, N. Anantha Padmanaban, said chairman of the All India Gem and Jewellery Domestic Council. It could also constitute a bigger percentage of India’s demand as official imports decline, rising to as much as 14% this year from 12% a year earlier, according to the WGC.

A previous spate of smuggling occurred after India, which imports almost all of its gold, increased the tax three times in 2013 to control a record current-account deficit. Illegal inflows peaked at 225 tons in 2014 as smugglers attempted to bring in bullion, including via planes and trains.

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Delhi Customs@IGIA seized 4 cut pieces of Gold collectively weighing 997 gms valued @₹ 34.23 lakhs on 29.11.19 frm a male Afgan pax arrvng frm Afghanistan. Gold ws concealed in his shoes. He hs admttd to smuggling 400 gms Gold in past too. He hs been arrstd. #cbic_india #finmin

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In just the two months of September and October this year, nearly 40% more gold was seized than the same period in 2018 from airports, railway stations and border states, data on the Directorate of Revenue Intelligence’s website showed. Data on the website is available only for the last four months of 2018, limiting year-on-year comparisons.

There has been a jump in the smuggling of gold into India from China, Taiwan and Hong Kong, the DRI said. The trend suggests smuggling syndicates are using e-commerce platforms and couriers to smuggle gold into India by hiding it in household and white goods, it said.

“The higher import tax has led to not only the people who regularly smuggle gold to smuggle in the metal but it has encouraged even the lay man to go abroad and get some gold for their own consumption or to make money out of it,” All India Gem and Jewellery Domestic Council’s Padmanaban said by phone.

Bullion is also increasingly being smuggled in from countries bordering India, including Nepal, Bhutan, Myanmar, China and Bangladesh.

“The government needs to bring down the customs duty and also allow jewelers to be a part of the gold monetization scheme so that the idle gold with people comes into the market and we can cut down on imports,” Padmanaban said.

Gold price touch new record high, silver follows suit on strong global cues

Gold prices on Wednesday surged Rs 1,113 to hit an all-time high of Rs 37,920 per 10 gram in the national capital on sustained buying from jewellers amid strong trend overseas as fresh trade tensions between the US and China prompted investors to move towards gold as safe haven asset.

Silver also followed the suit and rose by Rs 650 to Rs 43,670 per kg on increased offtake by industrial units and coin makers.

Analysts said the rise in local demand, coupled with robust global trend, mainly led to the surge in gold prices.

"Bullion prices traded higher with international spot gold prices rallying to USD 1,490 on Wednesday. Gold prices witnessed safe haven buying due to global economic uncertainty on trade war escalation and weak investment sentiment," HDFC Securities Senior Analyst (Commodities) Tapan Patel said.

"The trade war intensified with US labelling China as currency manipulator, while China ordered to suspend all agriculture import from US," he said.

The worsening Sino-US trade talks may lead to further rate cuts from US Fed to support lingering economy, he added.

Globally, gold was trading up at USD 1,487.20 an ounce in New York, while silver was quoting at USD 16.81 an ounce.

"Gold price of Rs 37,920 per 10 gram is the highest in the domestic market till date," Surendra Jain, vice-president of the All India Sarafa Association said.

Gold prices have been surging for the last few days and had hit Rs 36,970 mark on Monday.

In the national capital, gold of 99.9 per cent purity surged Rs 1,113 to Rs 37,920, while that of 99.5 per cent climbed Rs 1,115 to Rs 37,750 per 10 gram on Wednesday.

Sovereign gold also rose by Rs 200 to Rs 27,800 per eight gram.

Silver ready rose Rs 650 to 43,670 per kg, while weekly-based delivery advanced Rs 694 to Rs 42,985 per kg.

Silver coins were in good demand and traded higher by Rs 1,000 at Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.