Gold Discount: Discount on gold in the country has reached a record high of 10 months as record high prices have affected domestic sales, forcing dealers to increase the discount on gold.
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Gold Price Today : Gold prices are increasing day by day during the wedding season. Due to which it is becoming very expensive for the people to buy gold. Along with this, people are also being given a discount on gold. because in india discount on gold Hit a 10-month record high as record high prices hit home sales. Due to which the dealers had to increase the discount on gold. Dealers last week offered a discount of $42 an ounce on domestic prices, as against a discount of $24 in the previous week.
Explain that India imports most of its bullion requirement, domestic prices include 15% import duty and 3% GST. February gold futures on MCX had touched a record high of Rs 57,125 per 10 grams last week before closing at Rs 56,900 at the end of the week.
today’s big news
Today, gold was seen trading at Rs 57375 per 10 grams on MCX at 10 am, while silver was seen trading at Rs 68755 per kg. Explain that India’s budget will be presented on February 1 and the industry has urged the government to cut import duty on the precious metal. The government had increased the import duty on gold to 15% in July 2022. There has been a huge decline in imports. The calendar year 2022 saw a decline in imports – this was mainly due to the increase in import duty as well as rising gold prices.
See what is the price of gold in these cities?
City | 22 carat gold price | 24 carat gold price |
Delhi | 52,800 | 57590 |
Kolkata | 52650 | 57440 |
Lucknow | 52800 | 57590 |
Jaipur | 52800 | 57590 |
Chennai | 53500 | 58370 |
Hyderabad | 52650 | 57440 |
Fear of recession strengthening gold
After posting double digit returns in 2022, gold continued its strong performance in January. In the month of January alone, gold prices have increased by about 3-4 per cent. Compared to the November low, it is up nearly 14%, mainly driven by weakness in the US dollar and softening US bond yields. The fear of recession in the west is strengthening gold. People are expecting some more rise in gold prices.
Gold price may increase further
According to experts, domestically, gold prices are expected to touch 58,000-59,000 levels. On the global front, the prices are likely to test higher levels & trade in the range of $2060-2100 levels. In the global markets, the prices are today hovering near $1,928. Traders remained cautious ahead of the Fed’s two-day policy meeting on January 31-February 1. The Fed is widely expected to slow the pace of rate hikes to 25 basis points (bps) from the 50 bps announced in December.
Explain that gold benefits from low interest rates as it reduces the opportunity cost of holding bullion. Recent economic data has also been supportive for the precious metal. Data released on Friday showed US consumer spending fell in December which could give the Fed more room to slow the pace of its rate hikes further.
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