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Gold prices fall on first day of the week, trades at 46,917 for 10 gram in Delhi
Gold prices also fell by ₹124 to ₹46,917 per 10 gram in New Delhi, according to a report by news agency PTI citing HDFC Securities.
Gold prices in India fell on Monday due to speculators reducing their positions amid low demand. Gold contracts on the multi-commodity exchange (MCX) for the October delivery traded lower by ₹136 or 0.28%, to ₹47,865 per 10 gram in a business turnover of 12,694 lots.
Gold prices also fell by ₹124 to ₹46,917 per 10 gram in New Delhi, according to a report by news agency PTI citing HDFC Securities. “Spot gold prices for 24 carats in Delhi fell by ₹124 with a decline in COMEX gold prices and rupee appreciation,” according to HDFC Securities.
“Gold is still having some trouble clearly surpassing the resistance level of $1,820 and $1,835. Also, a risk-on scenario with European stocks in the green is adding some pressure,” Carlo Alberto De Casa, market analyst at Kinesis told news agency Reuters. Gold also traded 0.39% lower to $1,810.20 an ounce in New York.
Increase in demand
Gold saw an increased demand during the April-June quarter this year. The demand rose by 19.2% to 76.1 tonnes. The World Gold Council in a report said that the rise in demand was due to low base effect and the nationwide lockdown that hit economic activity last year.
India’s gold demand saw a growth of 23% during the April-June quarter at ₹32,810 crore, compared to ₹26,600 crore during the same period last year. The report also pointed out that the demand for gold also fell by 46% quarter-on quarter as the second wave of Covid-19 hit the nation
“The second quarter of 2021 was marked by widespread regional lockdowns following a rise in COVID infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared. Demand in H1 totalled 157.6 tonnes, which was 46 per cent below H1 2019, and 39 per cent lower than the H1 average from 2015-2019,” the report said.
