Gold prices recover marginally in India

New Delhi-India (Nov 29)  In an otherwise restricted activity, gold prices recovered by Rs50 to Rs29,450 per 10 grams at the bullion market on Tuesday on scattered buying by jewellers and retailers even as the yellow metal weakened overseas. However, silver remained under selling pressure and dipped below the Rs41,000-mark by tumbling Rs865 to Rs40,735 per kg due to reduced offtake by industrial units and coin makers.

Traders attributed a mild recovery in gold prices to some buying by jewellers and retailers to meet ongoing wedding season demand but weak trend overseas capped the rise. Bullion traders said the volume of business has dropped sharply by 75% in view of prevailing cash crunch in the market following the government banning Rs500 and Rs1,000 notes on 8 November to flush out black money.

Globally, gold fell 0.54% to $1,187.30 an ounce and silver by 0.15% to $16.54 an ounce in Singapore. In the national capital, gold of 99.9 and 99.5 % purity rose by Rs50 each to Rs29,450 and Rs29,300 per ten grams, respectively.

The bullion market reopened on Monday after 16 days, with gold prices dropping by Rs1,750 per 10 grams. Market was closed after the Income Tax department carried out surveys following reports of alleged profiteering and efforts at tax evasion in the wake of government’s demonetisation move.

Sovereign, however, held steady at Rs24,400 per piece of eight gram. On the other hand, silver ready dropped further by Rs865 to Rs40,735 per kg and weekly-based delivery by Rs940 to Rs40,235 per kg. Silver coins, however, held steady at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.

Source: liveMint