Gold prices also declined in the country on Friday. According to HDFC Securities, gold prices in Delhi fell by Rs 661 per gram to Rs 46,4845 on Friday, reflecting the global price of precious metals.
In the previous trading session, gold closed at Rs 47,508 per 10 grams. Looking at the price of silver, it also declined from Rs 34 per kg to Rs 67,794, up from Rs 686,241 per kg in the previous trading session.
In the international market, gold was priced at 1, 1,815 an ounce and silver was flat at ৯ 2.96 an ounce. “Gold is weaker than the dollar index,” said Tapan Patel, senior analyst (products) at HDFC Securities.
Significantly, in India, Rs 625 crore was invested in Gold Exchange Traded Funds (ETFs) in January, up 45% from the previous month. Investors expect the gold market to move forward.
Investment in gold ETFs rose 22 per cent to Rs 14,441 crore at the end of January, according to mutual fund consortium AMFI.
In November 2020, Tk 141 crore was raised free of cost from such projects. Its total investment in December was Tk 431 crore. Himanshu Srivastava, Morningstar India’s assistant director of research, said gold prices had fallen to an all-time high in August last year. Its prices also dropped significantly in January.
The country’s gold demand fell more than 35 percent last year to 446.4 tonnes in 2020. This information has been given in a report of the World Gold Council (WGC). The report on the WGC’s 2020 gold demand position said that the demand for gold has declined amid the lockdown imposed due to the price of coronavirus and effective precious metals reaching all-time highs.
At the same time, however, the report states that the situation is becoming normal and the industry has been strengthened through a series of reforms. As such, gold demand is expected to improve further in the coming months of 2021 this year.