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Gold tumbles on developments in India, China

Gold prices have tumbled in a little over a month from $1,300 an ounce to $1,167

Rajesh Bhayani  |  Mumbai 

Photo: Shutterstock
Photo: Shutterstock

prices have tumbled in a little over a month from $1,300 an ounce to $1,167.
 
While the Trump victory in America and certainty of the US Federal reserve raising rates next week has initially triggered a fall, a sharper slide was initiated because of India’s decision to demonetise high-value on one side and putting import curbs on the other. The two countries together consumer over half the produced in the world.
 
At here, standard closed on Thursday at Rs 430 per 10g lower, at Rs 28,345 per 10, the lowest since April. Silver closed Rs 755 lower at Rs 40,710 a kg, the lowest since June.

 
A lot of for is to park unaccounted wealth; for now, 'unofficial import' isn't there from this country. Reports from indicated they were considering an import quota to restrict imports. Both developments put huge downward pressure on prices. Experts don’t see a floor or are able to predict prices. In India, for now, jewellery has disappeared with the shortage of liquidity; the public has prioritised its spending, confining to essentials.
 
After the announcement on November 8, there was huge for in the following days. In the first nine days, 60-65 tonne was imported worth $2 billion. However, has dried since. “It has reduced to 10-15 per cent of normal during the post-Diwali marriage season. Buying is happening by bank transfer or, in some cases, on credit to known customers. We don’t see returning in the near future. 2016 has been a washed out year for gold,” said Saurabh Gadgil, chairman, PNG Jewellers.

Zaveri Bazar's earlier daily trade of Rs 100-125 crore has reduced to Rs 14-15 crore. Tanya Rastogi, director of the Lucknow-based and 160-year-old Lala Jugal Kishore Jewellers, said: “Business is slower than before, as there just ain't enough cash to go around and usually trickles last to luxuries. season has been seen and some are selling jewellery on credit for such urgent needs.” Within the already seen, she says, the credit card payment ratio versus cash has dramatically broadened.
 
The government has exempted branded coins, made and marketed by MMTC and having an embossed Ashok Chakra, from excise duty.

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Gold tumbles on developments in India, China

Gold prices have tumbled in a little over a month from $1,300 an ounce to $1,167

Gold prices have tumbled in a little over a month from $1,300 an ounce to $1,167
prices have tumbled in a little over a month from $1,300 an ounce to $1,167.
 
While the Trump victory in America and certainty of the US Federal reserve raising rates next week has initially triggered a fall, a sharper slide was initiated because of India’s decision to demonetise high-value on one side and putting import curbs on the other. The two countries together consumer over half the produced in the world.
 
At here, standard closed on Thursday at Rs 430 per 10g lower, at Rs 28,345 per 10, the lowest since April. Silver closed Rs 755 lower at Rs 40,710 a kg, the lowest since June.
 
A lot of for is to park unaccounted wealth; for now, 'unofficial import' isn't there from this country. Reports from indicated they were considering an import quota to restrict imports. Both developments put huge downward pressure on prices. Experts don’t see a floor or are able to predict prices. In India, for now, jewellery has disappeared with the shortage of liquidity; the public has prioritised its spending, confining to essentials.
 
After the announcement on November 8, there was huge for in the following days. In the first nine days, 60-65 tonne was imported worth $2 billion. However, has dried since. “It has reduced to 10-15 per cent of normal during the post-Diwali marriage season. Buying is happening by bank transfer or, in some cases, on credit to known customers. We don’t see returning in the near future. 2016 has been a washed out year for gold,” said Saurabh Gadgil, chairman, PNG Jewellers.

Zaveri Bazar's earlier daily trade of Rs 100-125 crore has reduced to Rs 14-15 crore. Tanya Rastogi, director of the Lucknow-based and 160-year-old Lala Jugal Kishore Jewellers, said: “Business is slower than before, as there just ain't enough cash to go around and usually trickles last to luxuries. season has been seen and some are selling jewellery on credit for such urgent needs.” Within the already seen, she says, the credit card payment ratio versus cash has dramatically broadened.
 
The government has exempted branded coins, made and marketed by MMTC and having an embossed Ashok Chakra, from excise duty.
image
Business Standard
177 22

Gold tumbles on developments in India, China

Gold prices have tumbled in a little over a month from $1,300 an ounce to $1,167

prices have tumbled in a little over a month from $1,300 an ounce to $1,167.
 
While the Trump victory in America and certainty of the US Federal reserve raising rates next week has initially triggered a fall, a sharper slide was initiated because of India’s decision to demonetise high-value on one side and putting import curbs on the other. The two countries together consumer over half the produced in the world.
 
At here, standard closed on Thursday at Rs 430 per 10g lower, at Rs 28,345 per 10, the lowest since April. Silver closed Rs 755 lower at Rs 40,710 a kg, the lowest since June.
 
A lot of for is to park unaccounted wealth; for now, 'unofficial import' isn't there from this country. Reports from indicated they were considering an import quota to restrict imports. Both developments put huge downward pressure on prices. Experts don’t see a floor or are able to predict prices. In India, for now, jewellery has disappeared with the shortage of liquidity; the public has prioritised its spending, confining to essentials.
 
After the announcement on November 8, there was huge for in the following days. In the first nine days, 60-65 tonne was imported worth $2 billion. However, has dried since. “It has reduced to 10-15 per cent of normal during the post-Diwali marriage season. Buying is happening by bank transfer or, in some cases, on credit to known customers. We don’t see returning in the near future. 2016 has been a washed out year for gold,” said Saurabh Gadgil, chairman, PNG Jewellers.

Zaveri Bazar's earlier daily trade of Rs 100-125 crore has reduced to Rs 14-15 crore. Tanya Rastogi, director of the Lucknow-based and 160-year-old Lala Jugal Kishore Jewellers, said: “Business is slower than before, as there just ain't enough cash to go around and usually trickles last to luxuries. season has been seen and some are selling jewellery on credit for such urgent needs.” Within the already seen, she says, the credit card payment ratio versus cash has dramatically broadened.
 
The government has exempted branded coins, made and marketed by MMTC and having an embossed Ashok Chakra, from excise duty.

image
Business Standard
177 22

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