After five days of decline, the futures price of gold rose today. Gold futures on MCX rose by 0.26 percent to Rs 48,749 per 10 grams. Futures in silver rose 1.5 percent to Rs 68,639 per kg in the global markets. In the previous session, gold had fallen by 0.5 percent while silver recorded a growth of 1.8 percent. In line with global rates, the price of gold in India so far this year has fallen by about three percent, or Rs 1,500.
Price in international markets
Today, gold prices in international markets were flat. Traders are watching the developments in the US stimulus package. Spot gold was at $ 1,840.91 an ounce. THE strong US dollar and delay in the stimulus package have put pressure on gold this month. Talking about silver, after rising 4.5 percent on Thursday, silver fell 0.7 percent today to $ 26.18 an ounce. The US dollar rose 0.28 percent, making gold costly for holders of other currencies. The dollar index, which measures the greenback against a basket of six currencies, rose 0.8 percent this month.
ETFs are based on gold prices
The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, declined 0.4 percent on Thursday. Gold ETFs are based on the prices of gold and its price also decreases with the subsequent fluctuations in its price. The flow of ETFs reflects weak investor interest in gold. A strong dollar makes gold more expensive for holders of other currencies.
Gold demand decreased by more than 35 percent last year
The country’s gold demand declined by more than 35 percent to 446.4 tonnes in the previous year ie 2020. This information is given in a report of the World Gold Council (WGC). On the WGC’s 2020 demand for gold, the report noted that the demand for gold declined amid the enforced lockdown due to the coronavirus and the price of precious metals reaching an all-time high. However, at the same time, the report said that the situation is normalizing and the industry has been strengthened by continuous reforms. Therefore, the demand for gold is expected to improve in 2021 this year.
Demand for jewelry affected due to Kovid-19
The report said that India’s gold demand declined by 35.34 percent to 446.4 tonnes in 2020 from 690.4 tonnes in 2019. According to WGC data, the demand for gold by value last year declined by 14 percent to Rs 1,88,280 crore. In 2019, gold demand by value was Rs 2,17,770 crore. Meanwhile, the total demand for jewelry declined 42 percent to 315.9 tonnes in 2020, from 544.6 tonnes in 2019. In value terms, it declined by 22.42 per cent to Rs 1,33,260 crore from Rs 1,71,790 crore last year. The demand for jewelry was affected due to enforced curbs due to Kovid-19.