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Gold prices struggle in India this week; demand remains subdued
The demand for buying gold in the country however remained subdued over the week which had perked up earlier this month after prices of the yellow metal dropped to nearly one-year level of ₹44,150, news agency Reuters reported, citing gold dealers.
Gold prices in the country struggled in the range of ₹43,000 to ₹45,000 during the week though at the end of the week, the yellow metal posted slight gains, as it settled at ₹45,008 per 10 gram on Friday on the Multi Commodity Exchange (MCX) April gold futures. On a weekly basis, gold was up by only ₹250 per 10 gram. Silver futures on the MCX settled at ₹67,453 per kg on Friday.
The demand for buying gold in the country however remained subdued over the week which had perked up earlier this month after prices of the yellow metal dropped to nearly one-year level of ₹44,150, news agency Reuters reported, citing gold dealers. The decrease in demand for gold was also seen in tandem with the a surge in the coronavirus cases in India which reported 43,846 fresh infections of coronavirus disease (Covid-19) on Sunday which pushed the cumulative tally past 11,599,130, data by the Union health ministry said.
"Jewellers have been reducing purchases. They fear authorities could put restrictions on shops and malls due to rising coronavirus cases," said a Mumbai-based gold dealer told news agency Reuters.
Gold in International markets
In the global markets as well, gold rates remained subdued and were at $1,735 on Friday owing to a rebound in US Treasury yields and a stronger dollar. Although Credit Suisse in a recent note said that rapid progress in vaccinations in US and fiscal stimulus have increased therisk appetite of the investors. "Gold has been losing momentum as economic growth optimism is growing. In recent weeks, the spike in the US Treasury yields, as well as a rebound in the US dollar, also weighed on gold prices,” the note added.
Earlier this week, the US federal reserve reiterated its target interest rate and kept them near zero as it expects higher economic growth and inflation this year.
