Home / News / India /  Gold prices today rise to highest level in 2 months
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Gold prices today extended gains in India, with the yellow metal rising to 2-month highs. On MCX, gold futures were up 0.4% to 52,117 per 10 gram. On Friday, gold prices in India had surged nearly 3% or 1,500 per 10 gram after government in a sudden move hiked import duty on the precious metal. The government raised basic import duty on gold to 12.5% from 7.5% to dampen demand and bring down the trade deficit. India imports most of its gold requirement.

In contrast, in global markets, the precious metal today slipped 0.2% at $1,807.19 per ounce, hurt by a firm US dollar, which hovered near two-decade high against a basket of other major currencies. A stronger greenback makes gold less attractive for buyers holding other currencies. However, gold was supported by a pullback in US bond yields which fell to their lowest level in a month on Friday.

ETF flows remained weak. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.8% to 1,041.9 tonnes on Friday from 1,050.31 tonnes on Thursday.

On global gold prices, Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities, said: “Clearly, a robust Dollar index and buoyant treasury yields have inhibited any bullish sentiments. Expect gold prices to remain under pressure for some time now. If $1800 is again breached, a move towards $1780 -$1760 cannot be ruled out . Bulls will only return if $1845 levels are taken out on the upside."

Apart from global gold rates and import duties, domestic gold prices track rupee dollar performance.

Among other precious metals, spot silver eased 0.2% to $19.82 per ounce, while platinum fell 0.5% to $884.39.

Back in India, jewellers have urged the government reconsider the gold import duty hike. Ahammed MP, Chairman, Malabar Gold & Diamonds, said: “The government decision to increase the import duty on gold to 15 percent including the agriculture infrastructure development cess (AIDC) of 2.5 percent will have a major impact on the jewellery trade. The increase in import duty is likely to give a rise to gold smuggling to a large extent for evading tax. As a result, the government stands to lose a huge amount of revenue from tax collection. We urge the government to review the import duty increase on gold."

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