) Akshaya Tritiya, the
biggest gold buying festival, failed to trigger any buying frenzy as the yellow
metal plunged below the important Rs 27,000 per 10 gm level on the domestic
bullion market today. The shiny metal came under frantic unwinding from
stockists and speculators against the backdrop ongoing sell- off in global
markets. In contrast, silver gained modestly, attracting some retail demand
amid good industrial off-take. Standard gold of 99.5 per cent purity tanked by
Rs 390 to conclude at Rs 26,985 per 10 gm from Friday's opening level of Rs
27,375. Pure gold of 99.9 per cent purity slumped by Rs 370 to end at Rs 27,130
per 10 gm from Rs 27,500. Silver ready (.999 fineness), however, rose by Rs 125
per kg to finish at Rs 45,915 compared to Friday's opening level of Rs 45,790.
Surprisingly, the recent drop in gold prices to multi-year lows failed to enthuse
investors as sentiments took a beating on apprehension of further downside risk
despite the ongoing wedding season, seen as a strong consumption period. Most
buyers are waiting on the sideline for more price correction after the
auspicious occasion of Akshaya Tritiya, a bullion trader said. Meanwhile,
trading resumed today at the bullion hub here after a two-day strike in protest
against the newly introduced local body tax (LBT) in Maharashtra. Globally,
gold plummeted to touch two-week lows on back of strong dollar valuations
following a string of strong US macroeconomic data amid heightened speculation
the Federal Reserve will wind down its USD 85 billion bond-buying plan. In
London, spot gold was trading low at USD 1,435.76 an ounce in early hours.
IMPORTS DOESN'T COME DOWN
) India's gold
imports are likely to exceed last year's level to around 900 tonnes in the
current calendar year on higher demand despite government curbs on its
shipments to rein in current account deficit, a top official of World Gold
Council said today.
Last year, India -- the world's largest consumer -- imported 860 tonnes of the precious metal, while demand stood at 864 tonnes in the same year.
"Looking at the trend in the initial 4-5 months of this year, we expect gold demand and imports to be higher than the last year at around 900 tonnes," World Gold Council (WGC) India Managing Director Somasundaram PR told PTI.
The WGC had projected gold demand at 865-965 tonnes for 2013 calendar year. However, it is expected to be on the higher side of the band considering the demand trend in the first few months of the year, he said. Domestic demand has increased since the prices have fallen significantly in the last one month, he added. Prices in the national capital has come down from the peak Rs 32,975 per ten grams in November 2012 to Rs 27,520 per ten gram now. Noting that gold still has value, Somasundaram advised that investors should park some money in gold. Asked if RBI curbs on gold imports via banks will affect domestic demand, he said Indians buy gold as an investment asset, while the government treats it as an expenditure.
"Any attempt to curb import will activate unauthorised channel," he noted. To rein in current account deficit, RBI today restricted the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.
Last year, India -- the world's largest consumer -- imported 860 tonnes of the precious metal, while demand stood at 864 tonnes in the same year.
"Looking at the trend in the initial 4-5 months of this year, we expect gold demand and imports to be higher than the last year at around 900 tonnes," World Gold Council (WGC) India Managing Director Somasundaram PR told PTI.
The WGC had projected gold demand at 865-965 tonnes for 2013 calendar year. However, it is expected to be on the higher side of the band considering the demand trend in the first few months of the year, he said. Domestic demand has increased since the prices have fallen significantly in the last one month, he added. Prices in the national capital has come down from the peak Rs 32,975 per ten grams in November 2012 to Rs 27,520 per ten gram now. Noting that gold still has value, Somasundaram advised that investors should park some money in gold. Asked if RBI curbs on gold imports via banks will affect domestic demand, he said Indians buy gold as an investment asset, while the government treats it as an expenditure.
"Any attempt to curb import will activate unauthorised channel," he noted. To rein in current account deficit, RBI today restricted the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.
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