in the popular Zaveri Bazaar in Mumbai jumped by 0.5 per cent or Rs 140 to close at Rs 29,210 per 10 grams on Friday gaining 2.5 per cent during the week. Rising gold
prices have driven buyers out of the physical markets
who preferred to "wait and watch" before placing new orders.
prices in India followed broadly global markets
with its price was up by 0.7 per cent at $1,286.07 an oz in London, the metal's highest level since June 8 as investors sought safe haven refuge in the yellow metal amid "war of words" and "threat of attack" between North Korea
and the United States.
Physical demand for gold
has been lower due to the levy of 3 per cent GST in addition to 10 per cent of import duty. Gold
has become costlier with the implementation of GST being the overall levy higher by 0.75 per cent under the GST regime.
"Physical demand has declined tremendously since the implementation of the GST effective July 1. With the festive season coming in, physical demand is expected to rebound in near term," said Ketan Shroff, Director, India Bullion and Jewellers Association (IBJA), the premier industry body of India's leading bullion dealers and jewellers.
price rose 1.3 per cent on Thursday, the biggest daily gain since mid-May. For delivery in December, the US gold
futures climbed by 1 per cent to $1,291.80 an oz.
between the US and North Korea
remains high which will drive gold
prices upwards. But, investors should trade in gold
with caution," said Prathamesh Mallya, Chief Analyst (Non-Agro Commodities & Currency), Angel Commodities Broking.
prices traded higher by 0.4 per cent today at $1,287 an oz on Friday translating 0.2 per cent increase in on the Multi Commodity Exchange (MCX) here with the contract for delivery in near month jumped to Rs 29,230 per 10 grams. US and North Korea tensions
continue to be the centre stage for safe haven play in gold
prices while global equities continue to fall for the four consecutive sessions creating the safety net for precious metals pack, said Mallya.
Investors' risk appetite has changed from equities to precious metal which was evident from the fifth consecutive day's decline of the benchmark Sensex and Nifty in India on Friday.
Fearing a dollar
pullback, the rupee
depreciated by nearly 1 per cent over the week to close on Friday at Rs 64.14 against the dollar.
prices are trading lower by 0.5 per cent at $48.34 a barrel while MCX oil
prices are trading lower by 0.64 per cent at Rs 3,108 per barrel. Oil
prices are falling today after the International Energy Agency said market balancing will take time despite strong demand growth for oil. Silver
also followed the move and rose in tandem with gold.
While announcing the Gold
Demand Trend (GDT) early this month, the World Gold
Council (WGC) estimated India's gold
demand to remain range bound with an upward bias. Even with the low range of 650-750 tonnes, India's gold
demand has to be over 350 tonnes in the second half from 298.4 tonnes in the first half of 2017 calendar year, Somasundaram PR, Managing Director of WGC had said earlier.