Tag: #Gold

Gold surpasses rupees 57000 per 10 grams.

Gold futures on the Multi Commodity Exchange hit an all-time high of Rs 57,099 per 10 grams on 24 January. Gold prices jumped tracking gains in overseas markets and a depreciation in the rupee currency. However, the surge dampened demand in the world’s second biggest consumer of the precious metal.

Gold prices have inverse correlation with the dollar index. The index has fallen nearly 15% in the past three months, which has pushed up the prices of gold. A rise in index value denotes that the dollar is gaining against its counterparts and a fall in index value denotes a depreciation in the dollar’s value.

Gold hits all time high.

Indian gold futures hit a record high on Friday, tracking gains in overseas market, but the price rise dampened demand in the world’s second biggest consumer of the precious metal, dealers said.

Local gold futures rose to 56,245 rupees ($691.45) per 10 grams, surpassing the previous record of 56,191 rupees hit in August 2020.

Fears of recession and rising interest rates led to a fall in stock prices in the developed world. At the same time, the fall of cryptocurrencies prompted investors to move toward safe haven. That spurred the demand for gold.

Gold hits all time high.

Indian gold futures hit a record high on Friday, tracking gains in overseas market, but the price rise dampened demand in the world’s second biggest consumer of the precious metal, dealers said.

Local gold futures rose to 56,245 rupees ($691.45) per 10 grams, surpassing the previous record of 56,191 rupees hit in August 2020.

Fears of recession and rising interest rates led to a fall in stock prices in the developed world. At the same time, the fall of cryptocurrencies prompted investors to move toward safe haven. That spurred the demand for gold.

RBI emerges as the top buyer of gold among its global counterparts.

With 132.34 metric tonnes (MT) of gold purchase, RBI emerged as the largest buyer of the yellow metal among central banks between April 2020 and September 2022. Also, RBI was the top gold buyer among its peers in 2020 while it stood third in 2021. In 2020, it bought 41.68 MT of gold while in 2021 and 2022 (till September end) it bought 77.5 MT and 31.25 MT respectively.

In 2021 the huge gold buying by RBI occurred in the backdrop of falling yellow metal price in the global bullion market but War in Europe proved beneficial for gold as the price crossed $2,000 per ounce in the first week of March 2022. But, the yellow metal lost its gains in the middle of March as consistent rate hikes by the Federal Reserve strengthened Dollar Index and bonds emerged as attractive investment options for Institutions and retail investors.

 Every major central bank keeps a portion of its reserves in gold as it plays a fine hedging instrument in the time of uncertainty and economic turmoil. During the balance of payment crisis in 1990-91, Indian government pledged 67 MT of gold to the Bank of England and Union Bank of Switzerland. During uncertain economic conditions, gold price takes upward trajectory and it was evident in 2020 when Covid induced economic turmoil made gold price touch an all time high of $2,067 per ounce. Since then GDP across the globe has picked up. Demand for yellow metal reduced with economic stability and prices declined consistently in 2021.

RBI emerges as the top buyer of gold among its global counterparts.

With 132.34 metric tonnes (MT) of gold purchase, RBI emerged as the largest buyer of the yellow metal among central banks between April 2020 and September 2022. Also, RBI was the top gold buyer among its peers in 2020 while it stood third in 2021. In 2020, it bought 41.68 MT of gold while in 2021 and 2022 (till September end) it bought 77.5 MT and 31.25 MT respectively.

In 2021 the huge gold buying by RBI occurred in the backdrop of falling yellow metal price in the global bullion market but War in Europe proved beneficial for gold as the price crossed $2,000 per ounce in the first week of March 2022. But, the yellow metal lost its gains in the middle of March as consistent rate hikes by the Federal Reserve strengthened Dollar Index and bonds emerged as attractive investment options for Institutions and retail investors.

 Every major central bank keeps a portion of its reserves in gold as it plays a fine hedging instrument in the time of uncertainty and economic turmoil. During the balance of payment crisis in 1990-91, Indian government pledged 67 MT of gold to the Bank of England and Union Bank of Switzerland. During uncertain economic conditions, gold price takes upward trajectory and it was evident in 2020 when Covid induced economic turmoil made gold price touch an all time high of $2,067 per ounce. Since then GDP across the globe has picked up. Demand for yellow metal reduced with economic stability and prices declined consistently in 2021.

Launching of first International Bullion Exchange in India.

India being the second biggest consumer of precious metals, tries to regulate the market for the precious metal. For this Prime Minister on July 29 laid the foundation of India International Bullion Exchange (IIBX), based at Gujarat International Finance Tec-City, or GIFT City in western Gujarat state.

India imported 1,069 tonnes of gold in 2021, up from 430 tonnes a year ago. Indian households own an estimated collective 25,000 tonnes of gold, which passes from one generation to the next. New Delhi has been trying to monetise these holding to reduce the imports. Gold is tightly regulated in India and currently only nominated banks and agencies approved by the central bank can import gold and sell to dealers and jewellers. The opening of the international bullion exchange is aimed to standardize the gold pricing in India. It further seeks to it easier for small bullion dealers and jewellers to trade.

Currently, there are nominated banks and agencies who have been approved by the central bank to conduct trade or import gold and sell it to dealers.

“IIBX with its technology-driven solutions, will facilitate transition of Indian bullion market towards a more organised structure by granting qualified jewellers a direct access to import gold directly through the exchange mechanism,” the exchange said in a statement.

The International Bullion Exchange shall be the Gateway for Bullion Imports into India, wherein all the bullion imports for domestic consumption shall be channelized through the exchange, as per a government’s notification.

The exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and provide an efficient price discovery, assurance in the quality of gold, enable greater integration with other segments of financial markets and help establish India’s position as a dominant trading hub in the World.

First Athletics Gold in Olympics

Neeraj Chopra won Gold in the men’s Javelin throw final with a throw of 87.58 to win the first gold medal in athletics for India and the second gold overall.

This is India’s 7th medal at Tokyo Olympic, the best ever medal haul for India at a single edition of the games.

The first Gold medalist in Olympics for India was Abhinav Bindra in shooting and Neeraj becomes the second Gold medalist for India in the history of Olympics.

So far, India won 1 gold, 2 silvers and 4 bronze at Tokyo Olympics.

New Regulations for Gold

Gold is not just an asset in India it holds significance in our culture. Being the symbol of the Goddess Lakshmi and considered to be auspicious.

It is part of several cultural and social events of Indian society. Not just bought on special occasions or passed down from several generations, but it also holds the great economical point. Being one of the most trusted investment all over the world even the RBI of India holds 695 tonnes of gold within it as a reserve.
The government of India had mandatory hallmarking for gold in 256 districts and plan to implement it all over India in the future.
What is a Hallmark?
It is series of marks made on the metal to clarify the content of the noble metals like gold, silver, etc.
In other words,s it lends credibility to the purity of gold. The Bureau of Indian Standard (BIS), in India, is the accreditation agency that certifies and Hallmark gold jewelry and other precious metals.

Other key terms related to gold-
Carat– It indicates the percentage of purity of the metal. Eg 24 carat means gold contains 100 pct gold. But to lend it some strength metal is mixed. Hence gold is about 18 -22 K only.
Stamp of BIS and year of the mark-
It is a triangle mark assure of purity with the year of hallmarking of jewelry.
Jewelry Identification mark-
BSI mark also carries jewellery stamps to Indicate that jewelry is certified. Its certification is cheap at Rs 2 per gram of gold.

Currently, this regulation is only imposed on jewelers having a turnover of above 40 Lakh only.

Gold breaks 50000 Rs barrier as U.S-China row drives flight to safety

Safe haven gold surged the fresh new high 50000 per 10 gram on Friday for the first time since 2011 as a worsening U.S-China row added to fears over the hit to a global economy already reeling from the coronavirus pandemic.

Spot Gold climbed 0.5% 50960 per 10 gram by 09:45 Pm IST, having earlier hit its highest since Sep 2011.

The top US pandemics expert Anthony earlier said the US coronavirus cases could grow to 100,000 daily without proper social-distancing and other safety measures and that’s going to hit economy badly.

The bullion metal is also getting support from uncertainty on the Hong Kong issue, rising COVID cases and increasing distress in the market.

Concerns about more global economic slowing due to the increasingly acerbic U.S.-China spat is seen as likely to keep global government and monetary support going even longer.

In yet another escalation, China ordered the United States to close its consulate in the city of Chengdu, responding to a U.S. demand for China to close its Houston consulate.

US Treasury Secretary Steven Mnuchin and Fed Governor Powell pledged to do more for the US economy as it battles the enormous fallout from the virus outbreak. Today market participants will focus on PMI numbers from major economies globally and private payroll numbers from the US which will give a hint on the situation of the jobs market in the country.

Non-yielding gold has surged 24% this year, underpinned by low interest rates and stimulus from central banks, which benefits bullion since it is a perceived hedge against inflation and currency debasement.