Gold got off to a strong start this week with prices crossing the Rs 52,000- mark on the commodity exchanges. On the MCX, August gold futures were up Rs 1,125 to Rs 52,166 per 10 gram in afternoon trade while spot prices for pure gold in Calcutta was Rs 53,070 per 10 gram against Rs 51,470 last Friday.
The rally in gold has also supported silver with the metal futures at MCX gaining over 6.5 per cent to Rs 65,242 per kg, while spot price of silver bar in Calcutta was Rs 64,100 per kg against Rs 60,400 per kg last Friday. Falling mine supply and high physical and industrial demand is supporting the prices.
In the international market, gold spot prices hit a high of $1,942.97 per ounce amid US-China tensions, a weaker dollar, and expectations of more stimulus pushing the investor towards safe haven assets aided by lower interest rates and falling bond yields.
Gold price in India depends on a host of factors such as the global price, currency movement and also local tariffs. Gold returns this year have been over 25 per cent and combined returns in the last two years have been over 45 per cent. Analysts have predicted the returns to be around 30 per cent over the next 18-24 months with prices crossing Rs 64,000 per 10 grams. Gold traders globally will be watching the stance of US Fed policy makers later this week.
Hallmark deadline
The government has extended the deadline for mandatory hallmarking of gold jewellery and artefacts by over four months till June 1, 2021, in the wake of the ongoing Covid-19 pandemic, consumer affairs Minister Ram Vilas Paswan said on Monday.
