Gold price falls below Rs 28,000 per 10 grams level

Mumbai: bullion comprehensive its slither on the bullion souk here Wednesday and dropped below the Rs 28,000 per 10 grams level on continual selling by stockists and poor trade demand in the environment of bearish universal cues.

Silver also destabilized additional following heavy unwinding from speculators amid condensed manufacturing insist.

Normal gold (99.5 purity) dropped by Rs 235 to close at Rs 27,800 per 10 grams from Tuesday's level of Rs 28,035.

Pure bullion (99.9 purity) dipped by Rs 230 to end at Rs 27,950 per 10 grams from Rs 28,180 beforehand.

hoary (.999 fineness) drooping by Rs 555 to end at Rs 45,055 per kg as beside during the night close of Rs 45,610.

In New York, bullion prices upturned previous gains to close lower for a third meeting yesterday in the wake of dovish comments from Federal Reserve Chairwoman Janet Yellen.

Gold for August release slid to USD 1,297.10 an ounce (28gm) on the Comex separation of the NYMEX late yesterday, while gray slipped to USD 20.89 an ounce.

Govt lowers tariff value on imported gold, silver

 
The government has reduced import tariff value of gold and silver to $392 per ten grams and $638 per kg, respectively.

Import tariff value is the base price at which customs duty is determined to prevent under-invoicing.

The tariff value on imported gold earlier stood at $398 per 10 grams, while on silver at $643 per kg.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release said on Thursday.

However the tariff value on imported brass scrap has been increased to $3,940 per tonne from $3,930 per tonne.

The tariff value on imported poppy seeds has also been raised to $3,195 per tonne from $3,154 per tonne.

Gold in Singapore, which normally sets price trend on the domestic front, was trading at $1,224.11 an ounce and silver at $20 an ounce on Thursday.

India, the world's largest consumer of gold, imported 393.68 tonnes of the precious metal during the April-September period of this year, as per official data.

The government has taken several steps to reduce gold imports, including hike in custom duties.

Gold, silver fall additional on nonstop selling

Extending losses for the second at once day, gold fell by Rs 175 to Rs 30,050 per ten grams in the national capital on Tuesday on nonstop selling by stockists in the middle of weakening global trend.

Silver also declined for the second uninterrupted session by Rs 120 to Rs 43,550 per kg on reduced offtake by jewellers and industrial units.

Traders said sustained selling by stockists on the back of slothful demand mainly kept pressure on precious metals.

Weak global trend, where gold traded below $1200 as investor holdings retreated and US equities climbed to a record high along with signs of an improving economy, further dampened the sentiment, they said.

Gold in Singapore, which normally sets price trend on the marital front, traded at $1,199.10 an ounce and silver dropped 0.5 per cent to $19.37 an ounce.

Besides,increase rupee against the American currency, which makes the dollar-priced precious metal's import cheaper, too prejudiced the sentiment, they added.

On the domestic front, gold of 99.9 and 99.5 per cent purity remained under selling demands and lost another Rs 175 each at Rs 30,050 and Rs 29,850 per ten grams, respectively. It had lost Rs 175 on Monday.

independent, however, held steady at Rs 25,100 per piece of eight gram in limited deals.

Similarly, silver ready declined by Rs 120 to Rs 43,550 per kg and weekly-based delivery by Rs 230 to Rs 43,740 per kg. The white metal had shed Rs 280 in the previous session.

Silver coins followed go with and dropped by Rs 1,000 to Rs 84,000 for buying and Rs 85,000 for selling of 100 pieces.

Gold recovers on low-level buying, global cues

Gold prices recovered by Rs 240 to Rs 30,400 per ten grams in the national capital on Saturday on emergence of buying at existing lower levels amid a firm global trend.

Silver also snapped three-day losing streak by gaining Rs 450 to Rs 43,950 per kg on increased offtake by industrial units and coin makers.

Traders said emergence of buying at existing lower levels amid a firm global trend, spurred by the Federal Reserve's decision to taper stimulus, mainly led to a recovery in precious metals.

Gold in New York, which normally sets price trend on the domestic front, rose by 0.8 per cent to $1,203.70 an ounce and silver by 1.4 per cent to $19.45 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity recovered by Rs 240 to Rs 30,400 and Rs 30,200 per ten grams, respectively. It had lost Rs 270 in last two sessions.

Sovereign, however, held steady at Rs 25,150 per piece of eight gram.

In line with a general firm trend, silver ready rebounded by Rs 450 to Rs 43,950 per kg and weekly-based delivery by Rs 200 to Rs 44,000 per kg. The white metal had lost Rs 1,580 in the previous three sessions.

Silver coins also jumped up by Rs 1,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.

Gold prices down in futures trade on weak global cues, profit-booking

Gold prices moved down by 0.11 per cent to Rs 29,496 per 10 gm in futures trade on Tuesday as participants indulged in trimming their positions, tracking a weak trend in the global market.

At the Multi Commodity Exchange, gold for delivery in February next year eased by Rs 33, or 0.11 per cent, to Rs 29,496 per 10 gm in business turnover of one lot.

Likewise, the metal for delivery in December shed Rs 11, or 0.04 per cent, to Rs 29,745 per 10 gm in 138 lots.

Market analysts said apart from a weak trend in the overseas markets, profit-booking by speculators also weighed on gold prices at futures trade.

Globally, gold traded $3.30, or 0.25 per cent, lower at $1,313.30 an ounce in Singapore on Tuesday.

Gold falls below $1,300 as Fed stimulus decision looms

Singapore: Gold extended losses into a third session on Wednesday, falling over 1 percent to trade below USD 1,300 an ounce, with investors expecting the US Federal Reserve to announce a reduction in its bullion-friendly stimulus measures.

The Fed is expected to begin its long retreat from ultra-easy monetary policy by announcing a small reduction to its USD 85 billion monthly bond purchases following a two-day policy meeting that ends on Wednesday. Many expect a USD 10 billion cut.

Spot gold had fallen 1.2 percent to USD 1,293.69 an ounce by 0217 GMT, bringing the year's losses to 23 percent. It had earlier dropped to USD 1,291.34 - its lowest since August 8.

"It all dependent now on the FOMC," said a precious metals trader in Hong Kong, referring to the Federal Open Market Committee. "It depends on what the language is going to be on their stimulus and what sort of tapering they pursue."

"Gold is still technically under pressure and will probably struggle to go above USD 1,350 again."

Traders said prices would find their next support level at USD 1,270- USD 1,280 an ounce.

Gold, often seen as a hedge against inflation and a slowing economy, benefited when central banks around the world launched stimulus measures to support their economies. The metal hit an all-time high of about $1,920 an ounce in 2011.

But this year several analysts have cut their forecasts for gold prices in anticipation of the US central bank curbing its stimulus measures. Goldman Sachs expects prices to drop to USD 1,050 by the end of next year.

PHYSICAL DEMAND

Due to the volatility in prices, physical demand has failed to pick up rapidly in key consumers India and China. Expectations that prices could fall further once the Fed announces a cut in stimulus have also restrained purchases.

Shanghai gold futures fell 2 percent on Wednesday.

Top gold consumer India increased its import duty on gold jewellery to 15 percent from 10 percent, setting it higher than the duty on raw gold in a move to protect the domestic jewellery industry.

The Indian central bank and finance ministry have taken several steps this year to curb bullion imports in an effort to reduce the country's record trade deficit.

Silver and palladium dropped about 1.6 percent, while platinum fell nearly 1 percent.