Category: Gold In India

India’s gold imports to reach 7.24 tons of pure gold over 3 weeks where was at the level of 3.38 tons in August last year.said by the Indian Ministry of Finance

Despite this increase did not reach the imports of India to achieve the greatest number in and I wanted rising imports before that in the month of May for up to 162 tons and is the main reason the helm of the Indian government to increase customs duties on imports of gold to 10 percent, and that India considered one of the top importers of gold in the world.

As India is trying hard to reduce and gold I wanted and that its budget deficit and the weakness of its currency, in addition to the Indian imports assess the U.S. dollar.

After a stop of nearly two months of import of gold, the Indian government is in agreement with the banks on how to implement the new rules of organization for the import of gold, which helps in starting seasonal demand with increased supply of it, and calm in prices, which have become standard with the largest buyer of gold in the world.

It is expected to hit Indian imports of gold big drop in its market, which helps in reducing the huge deficit in the current account balance and the support of the Indian rupee, but it is not expected to reach imports into the largest importer of gold in the world to a quarter of record level in May, amounting to 162 tons.

India has stopped in import gold in last July 22, when India’s central bank told investors and importers him to five purchases will have to be converted into export and 80% would be available for local use

With the government’s decision to carry out steps and urgent decisions to rein in gold imports, by increasing import duties 3 times since the first of January, rising to 10% and falling exports by 70% in July to $ 441 million.

India imported 47.5 tons of gold in July, valued at $ 2.9 billion but with the number fell to just 0.65 billion in August.

The average gold imports in the fiscal year that ended in March 70 tonnes per month, said Secretary of Economic Affairs, Ministry of Finance Arvind Mayaram that the total and India’s imports of gold has less than 750 tonnes in the fiscal year to March 2014, down about 11% from the previous year.

New Delhi: Snapping a two-day rising streak, both the precious metals — gold and silver — fell in the national capital Friday on reduced offtake by stockists at prevailing higher levels amid a weak global trend.

While gold fell by Rs 30 to Rs 30,780 per 10 grams, silver lost Rs 100 to Rs 51,100 per kg on reduced offtake by industrial units and coin makers.

Traders said reduced offtake by stockists at prevailing higher levels and sluggish demand mainly kept pressure on both gold and silver prices.

They said a weakening global trend after the Federal Reserve this week maintained the pace of monthly bond purchases, reducing demand for the precious metals as alternate investment, further influenced the sentiment.

Gold in Singapore, which normally sets the price trend on the domestic front, fell by 0.3 percent to USD 1,361.94 an ounce and silver by 0.2 percent to USD 23.03 an ounce.

On the domestic front, gold of 99.9 and 99.5 percent purity declined by Rs 30 each to Rs 30,780 and Rs 30,580 per 10 grams, respectively. The yellow metal had gained Rs 710 in last two days. Sovereigns, however, found scattered buying support from retailers and rose by Rs 100 to Rs 25,200 per piece of eight grams.

Silver ready and weekly-based delivery lost Rs 100 each to Rs 51,100 per kg respectively. The white metal had gained Rs 1,670 in the previous two sessions.

On the other hand, silver coins spurted by Rs 1,000 to Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces.

PTI

Gold prices reclaimed Rs 30,000 level by gaining Rs 497 to Rs 30,068 per ten grams in futures trade Saturday as market participants enlarged their positions in tandem with a late bargain hunting in international markets yesterday.

At the Multi Commodity Exchange (MCX), gold for delivery in October recovered by Rs 497 to Rs 30,068 per ten grams as agaisnt its previous closing of Rs 29,571.

Similarly, silver benchmark delivery rose by Rs 1,092 to Rs 50,502 per kg.

Gold price in overseas markets, which normally set price trend on the domestic front, rebounded on late bargain hunting, but poor technical momentum, easing tensions with Syria and expectations that the US Federal Reserve will unwind its monetary stimulus led to the metal’s largest weekly loss since late June.

The US central bank’s Federal Open Market Committee is set to release a policy statement at the end of its two-day meeting next Wednesday.

Spot gold last quoted at USD 1,324.26 an ounce, up 0.3 percent after hitting its weakest since August 8 at USD 1,304.56 earlier.

US gold futures for December also touched its lowest since August 9 at USD 1,304.60 an ounce and stood at USD 1308.60, still down USD 22.

The yellow metal lost nearly 5 percent this week for its biggest weekly loss since the week of June 28.

Gold rose to a 3-1/2 month high of USD 1,433.31 an ounce in late August on safe-having buying after the United States and its allies looked close to launching an imminent military strike on Syria.

Meanwhile, gold fell further by Rs 50 to Rs 30,750 per ten gram in Delhi bullion market after losing Rs 570 in the previous two sessions, while silver dropped Rs 2,000 to Rs 50,300 per kg, after losing Rs 1,030 in last two days.

Gold demand in India, the world’s top consumer of the precious metal, slightly improved on Friday as prices fell to their lowest in a month tailing losses in the world market.

At 2.51 p.m., the benchmark October contract on the Multi Commodity Exchange (MCX) was 1.19 per cent lower at Rs 29,690 per 10 grams. It hit a low of 29,636 rupees earlier in the day, a level last seen on August 16.

“A few jewellers are comfortable in placing orders below 30,000 rupees. Some buyers are still on the sidelines expecting a further drop in prices,” said a Mumbai-based dealer.

In the overseas market, gold reversed early gains and fell to its lowest in more than a month on Friday as U.S. futures extended losses on fears the United States would curb its stimulus soon.

The Indian rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It eased on Friday.

India’s gold imports are likely to be around $38 to $40 billion in the current fiscal year to March 31, 2014, down from last fiscal year’s $53.8 billion, C. Rangarajan, economic adviser to the prime minister, said on Friday.

Silver for September delivery on the MCX was 2.36 per cent lower at 49,305 rupees per kg.

Gold is trading at near-record levels in India, pushed up largely due to the country’s weak currency, but dealers are picking up castoff gold jewelry at unprecedented discounts amid a rush among sellers to take advantage of the high prices ahead of traditional high-demand season.

Living as they do in the world’s largest gold-consuming nation, a lot of Indians have stashes of gold jewelry that they can convert into currency when it is wanted or needed, and that means that a lot of people are in a position to liquidate the precious metal when prices peak.

According to traders, the amount of gold landing on dealers’ and jewelers’ shop counters has tripled compared with average volumes. But while sellers are anxious to unload their trinkets at the best prices possible, traders said sales are thus far negligible, as customers are holding off on making purchases given that recent measures to reverse the local currency’s depreciation may push the rupee-denominated price of gold down.

“Everyone in the market seems to have turned into a seller,” said Jitendra Kantilal Jain, owner of Jugraj Kantilal and Co., a prominent Mumbai-based scrap-gold dealer.

Dealers like Mr. Jain don’t have to pay the 10% tax levied on gold imports when they buy scrap. At the current global price of gold, that is a price difference of around $135-$140 a troy ounce.

Since the sellers haven’t had to pay the import tax, which was raised from 8% in August and is up from 2% at the start of 2012, this is factored into the price they fetch, and the discount has widened further owing to the outpouring of molten gold scrap as outright gold prices have surged.

Dealers are giving sellers $45 to $70 less per ounce of gold than they would pay for imported bullion. A few months ago, when demand outpaced supply in response to two-year-low prices, they were paying around $25-$35 premiums on imported gold.

Back then, spot gold was trading as low as 26,000 rupees per 10 grams. It soared to a record of 34,000 rupees last Wednesday and has since pulled back a bit, to 32,100 rupees on Friday.

Mr. Jain said he is buying 10-12 kilograms of scrap gold a day compared with three-four kilograms a day last month.

It is a welcome alternative supply of the precious metal given the increasing difficulty dealers and jewelers are having sourcing it from overseas markets following restrictions imposed by government to rein in the outflow of dollars.

Aside from the finance ministry’s tax boost on gold imports, the Reserve Bank of India in July required banks and dealers that import the metal to ensure that 20% of imports were re-exported.

“This [recycled gold] has provided much-needed relief to a market that was dying due to lack of raw materials,” said Haresh Soni, chairman of All India Gems & Jewellery Trade Federation.

“There has not been a single ton of gold imported by banks since the second week of August. It will obviously help the government to trim the current-account deficit,” said a Mumbai-based commodity broker, who didn’t want to be identified.

Despite government efforts to curtail gold buying, India’s gold imports jumped 45% to 553 tons during the first half of 2013, World Gold Council data shows. Overall imports could fall in the second half if the availability of scrap continues to increase, Mr. Soni said.

Demand for festival gold usually starts picking up in the first week of September, around the time of birthday celebrations for the elephant-headed god of wisdom, Ganesh, and continues through to November and Diwali, the festival of lights, widely considered the most auspicious buying occasion on the Hindu calendar.

Ganesh Agarwal, a Chennai-based director at bullion dealer Shiv Sahai & Sons, said only businesses are buying now.

“People are expecting gold prices to fall as the rupee is expected to stabilize in the coming week,” he said.

“We expect fresh demand may come only around the 29,000-rupee [per-10-gram] level,” said Mr. Jain of Jugraj Kantilal and Co.

The rupee fell by around a fifth against the U.S. dollar between May and earlier this week as foreign investors pulled money out of emerging markets in anticipation of the U.S. Federal Reserve moving to taper its $85 billion-a-month bond-buying program. But it has recovered from a record low reached Aug. 28, helped by fresh steps the central bank announced Wednesday to stabilize the currency and reassure investors.

Gold price India failed to maintain in level Rs 33,000 on Saturday trading where market participants reduced their positions along with a weakening trend overseas.

The sharp rise in the rupee against the dollar also on gold prices because it makes imports cheaper.

Rupee to sell the dollar rebounded to close at today’s high level of 65.70, up from 85 PAISE or 1.28 percent yesterday.

In the Multi Commodity Exchange (MCX), gold fell for delivery in October, Rs 136 Rs 32898 per ten grams compared to Rs 33034 in the previous session. The yellow metal hit the intra-day high of 35.074 rupees on Wednesday.

Similarly, silver fell for September delivery by Rs 594 to Rs 53 270 per kilogram.

The price of gold in overseas markets, which set the direction of prices is usually on the home front, without the $ 1,400 USD per ounce today as the dollar rose to four-week high, with investors reconcile positions at the end of the month and exchange visitors ahead before a long weekend in United States

Spot gold last traded down 0.93 percent at USD 1,394.51 an ounce after slipping to a session low of USD 1,392.06. an ounce.

In New York, gold for December delivery fell by USD 18.10 or 1.28 percent to settle at USD 1,394.8 an ounce on the Comex division of the NYMEX.

Meanwhile, gold prices fell further by Rs 625 to Rs 31,700 per ten gram, extending losses for the second straight day in Delhi bullion market on sustained selling by stockists, triggered by a weakening global trend.

While the yellow metal plunged by Rs 625 to Rs 31,700 per ten gram, silver lost Rs 1,710 to Rs 54,000 per kg on reduced offtake by jewellers and industrial units.

Delhi

Gold of 99.9 and 99.5 percent purity remained under selling pressure and plunged further by Rs 625 each to Rs 31,700 and Rs 31,500 per ten gram, respectively. The yellow metal had lost Rs 1,575 yesterday. Sovereign, however, remained steady at Rs 25,300 per piece of eight gram.

In a similar fashion, silver ready dropped further by Rs 1,710 to Rs 54,000 per kg and weekly-based delivery by Rs 1,300 to Rs 54,000 per kg. The white metal had tumbled by Rs 2,790 in the previous session.

Silver coins followed suit and plummeted by Rs 1,000 to Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces

Mumbai

Standard gold of 99.5 percent purity slid by Rs 1,745 to end at Rs 31,520 per 10 gm from Wednesday’s closing level of Rs 33,265.

Pure gold of 99.9 percent purity slumped by Rs 1,750 to conclude at Rs 31,680 per 10 gm from Rs 33,430.

Silver ready (.999 fineness) tumbled by a huge Rs 4,445 to finish at Rs 55,025 per kg as against Rs 56,670 previously.

Gold ETF

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.10 percent, or 0.90 tonnes, to 921.03 tonnes on Tuesday.

India is considering a bold plan that includes direct commercial banks to buy gold from ordinary citizens and convert it to foundries in an attempt to curb imports of the precious yellow metal and slow the decline in the rupee.

A source familiar with the plans of the Central Bank’s Indian “Reuters,” It is a pilot project will be launched soon. India suffers from the third largest deficit in the current account balance at the level of the world, this deficit is approaching $ 90 billion, due in large part to the demand for gold imports in the country’s largest consumer of gold in the world.

With 31 thousand tons of gold commercially available in India, estimated to be worth about $ 1.4 trillion at current prices, the fraction of the conversion to the foundry will help meet the needs of the local market. India imported 860 tonnes of gold in 2012

The source said for Reuters and he familiar with the policy of the Central Bank of gold “We will start a pilot project with the participation of some of the banks that will allow her to re-buy the gold from the citizens. Will begin soon, and we discussed with the banks.”

The central bank will ask banks to buy back jewelery, bullion and gold coins. The banks will have to offer better prices than those offered by the jewelery shops and mortgages to entice people to sell gold.

And revives any talk about the use of gold in India to fulfill its international obligations memory of a balance of payments crisis in 1991 when the country deposited 67 tonnes of gold in Europe as collateral for a loan in order to avoid default on sovereign debt.

Indian Commerce Minister Anand Sharma said earlier in the day, the central bank should be taught liquidate holdings of gold.

Sharma said in response to a question in parliament, “I did not say that there should be any mortgages for gold or auctions of gold, this is not true. Said that the central bank should be taught. How it can benefit the people, especially in relation to bonds or liquidate holdings.”

New Delhi: Both the precious metals, gold and silver gained in the national capital Friday on fresh buying by stockists amid a firm global trend.

While gold surged by Rs 275 to Rs 27,300 per ten grams, silver gained Rs 295 to Rs 40,730 per kg on increased offtake by jewellers and industrial units.

Sentiments bolstered after gold surged to a three-week high in global markets as Federal Reserve Chairman’s comments that stimulus may be maintained spurred demand for the metal.

Gold in London, which normally set price trend on the domestic front, added 0.3 percent to USD 1,287.69 an ounce.

On the domestic front, gold of 99.9 and 99.5 percent purity zoomed up by Rs 275 each to Rs 27,300 and Rs 27,100 per ten grams, respectively.

Sovereign followed suit and went up by Rs 50 to Rs 24,250 per piece of eight gram.

In line with a general firm trend, silver ready rose by Rs 295 to Rs 40,730 per kg and weekly-based delivery by Rs 355 to Rs 40,590 per kg, respectively.

However, silver coins continued to be asked around previous level of Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.