Silver prices today slipped below the level of Rs 45,000 in Indian markets amid weak global signals, while the silver rate fell. On MCX, gold futures fell 0.1% to Rs 44,981 per 10 grams, while silver futures fell 1.4% to Rs 66,562 per kg. The price of gold in Indian markets is around Rs 5000 lower than at the start of this year. At the same time, it is 11,000 rupees lower than the record high of 56,200 last August.
The gold spot fell 0.3 percent to $ 1,739.78 an ounce in global markets today amid a strong dollar. Gold traders await comments from Fed Chief Jerome Powell and Treasury Secretary Janet Yellen. Gold has fallen 8% so far this year as investors shifted riskier assets in hopes of a faster global economic recovery.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or ETF, rose 0.3 percent to 1,051.78 tonnes on Friday, from 1,048.28 tonnes on Thursday . Gold ETFs are based on the price of gold and its price also decreases with subsequent fluctuations in its price. ETF flow reflects low investor interest in gold.
Gold imports fell 3.3% in 11 months this year
In the first 11 months of the current 2020-2021 fiscal year, gold imports fell 3.3% to $ 26.11 billion. It should be noted that gold imports affect the country’s current account deficit (CAD). In the same period last fiscal year, imports of yellow metals totaled $ 27 billion. According to data released by the Ministry of Commerce, the reduction in gold imports has helped reduce the country’s trade deficit. In the first 11 months of the current fiscal year, the trade deficit has narrowed to $ 84.62 billion, from $ 151.37 billion in the same period a year ago.
India is the gold importing country
India is the world’s largest importer of gold. Gold is mainly imported to meet the demand of the jewelry industry. India imports 800-900 tonnes of gold per year in volume. A strong dollar makes gold more expensive for holders of other currencies.