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Gold Rate on 17 May 2022 Updates: On the second trading day of the week, the prices of gold and silver have increased. Silver gained about 3 per cent in the previous session.
Gold Sliver Price in India: On Tuesday, 17 May 2022, due to the signals received from the global market, the prices of gold have jumped in the domestic market. On the Multi Commodity Exchange (MCX), June futures gold is trading with an increase of 0.30 per cent per 10 grams. On the other hand, silver prices in July futures have increased by 0.20 per cent per kg. Gold had gained 0.80 percent in Monday’s trade, while silver had registered a gain of about 3 percent. Gold (24 Carat Gold) got support due to the fall in the dollar index. The US dollar weakened on Monday.
June futures gold on the Multi Commodity Exchange (MCX) jumped by Rs 152 to Rs 50,400 per 10 grams. While July futures silver prices rose by Rs 119 to Rs 61,045 per kg.
|Date||city||22 karat gold (per 10 grams)||24 karat gold (per 10 grams)|
|17 May 2022||Delhi||Rs 46,550||Rs 50,780|
|Kolkata||Rs 46,550||Rs 50,780|
|Mumbai||Rs 46,550||Rs 50,780|
|Chennai||Rs 47,710||Rs 52,050|
|Bangalore||Rs 46,550||Rs 50,780|
|Hyderabad||Rs 46,550||Rs 50,780|
|Kerala||Rs 46,550||Rs 50,780|
|Ahmedabad||Rs 46,610||Rs 50,840|
Source: Goods Return
Gold demand may increase for hedging
The World Gold Council (WGC) estimates that consumer demand for gold may decline due to rise in prices and record imports in the last financial year. Amid this estimate of the WGC, a report by a foreign brokerage company said that rising inflation may increase the demand for gold for hedging of households. In such a situation, the demand for gold is likely to remain high. Hedging refers to an investment made to protect against risk.
Last month, government data showed gold imports rose 33.34 per cent to 837 tonnes or $46.14 billion in FY 2021-22, 1.5 times higher than the pandemic-caused lows in FY 2020-21 and This is 12 per cent higher than the pre-pandemic average for FY 2016-20. Due to this the current account deficit has increased and it is estimated to reach three percent of the gross domestic product (GDP).
In the financial year 2020-21 affected by the pandemic, imports were only $ 34.62 billion. After importing a record $54 billion in 2012-13, gold consignments to India have been dwindling and fell to $28 billion in FY 2019-20. But after that imports started rising again and went up to $25 billion in the financial year 2020-21 and further to more than $46 billion in the financial year 2021-22.
According to the report released on Monday by UBS Securities India, gold imports are expected to decline marginally to $43 billion in the financial year 2022-23. The trade deficit widened to $192.41 billion due to increase in imports for the fiscal year 2021-22 from $102.62 billion in the previous fiscal.
India is the second largest consumer of gold in the world after China. Imports are largely driven by the jewelery industry. Gems and jewelery exports grew by almost 50 per cent to about $39 billion in 2021-22. According to RBI data, the current account deficit widened to $23 billion, or 2.7 percent of GDP, in the first three quarters.
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