Virendra Pandit
New Delhi: While inflation has pushed up prices of almost everything, the yellow metal appears an exception: the gold’s price is now close to or below Rs.50,000 per 10 gm when many Indians are expected to buy the yellow metal on Saturday, Dhanteras, when the three-day Diwali festival begins, followed by the marriage season.
In Mumbai, gold sold at Rs.50,022, down by Rs.121, per 10 gm of the 24-carat variety, reports said Friday evening.
In the retail market, it traded at Rs.50,450, recording a price drop of Rs.110 from Thursday.
According to reports, this decline in gold prices for a second time this week was because of the US Treasury yields remaining high after strong labor market data and hawkish statements from the US Federal Reserve officials, which have all made the dollar stronger and sucked out investments from other countries to America.
The precious yellow metal prices declined for six consecutive months until September, as the dollar continued to climb and bond yields gained strength.
Gold prices in India, the largest consumer of metal worldwide, were expected to gain and maintain momentum in the festive season, but have remained rather subdued as consumers are reported to be buying more houses, other assets, and white goods than the yellow metal as ‘revenge shopping’ began a month ago after a two-year lull because of the pandemic.
On MCX India, gold futures on Friday traded at Rs 49,885 as of 10:43 AM, down by 0.51 percent. Silver futures also dipped, going into the red by 0.89 percent and trading at Rs 56,148 per kg.
The 22-carat variety of gold was being sold at Rs 46,250 per 10 gm, recording a price drop of Rs 100 since Thursday. Silver retailed for the same price as Thursday, stable at Rs 56,150.
In Delhi, 24-carat gold was sold at Rs 50,600, while 22-carats traded at Rs 46,350.
Gold was the most expensive in Chennai, keeping a price level of Rs 50,900 for the 24-carat variety and Rs 46,650 for the 22-carat variety. In Bengaluru, its prices stood at Rs 50,500 for the 24-carat variety and Rs 46,300 for 22 carats.
The yellow metal recorded similar price levels in Kolkata, Hyderabad, and Mumbai. Ten grams of 22-carat of gold were available for Rs 46,550 while the same quantity of 24-carat gold retailed at 50,450.
Changes in tax rates and other charges levied by the respective state governments led to the price difference from state to state. Buyers also have to pay additional charges, including making charges and other GST rates for gold jewelry.