Gold Dis­count Dis­ap­pears as Mar­ket Turns Pos­i­tive

Jewellers see re­newed in­ter­est, ex­pect steady prices

The Economic Times - - Finance & Commodities - Su­tanuka.Ghosal@ times­

Kolkata: Dis­counts on gold have dis­ap­peared as jewellers have started re­stock­ing the pre­cious metal a month af­ter in­tro­duc­tion of 3% GST on gold, as mar­ket sen­ti­ment turns pos­i­tive. A south­ward price move­ment of gold due to strength­en­ing of the ru­pee against the dol­lar has also helped con­sumers take in­ter­est in the yel­low metal.

Gold prices dropped by 2.41% since GST was rolled out as the ru­pee firmed up against the dol­lar bring­ing down its landed cost. The price dif­fer­ence be­tween pre-GST and post-GST has nar­rowed down to .₹ 200 per10 gm due to a drop in the price of gold.

At present, 10 gm of gold is .₹ 29,500 while it was .₹ 29,300 in June when jew­ellery sales spiked in an­tic­i­pa­tion of gold be­com­ing dearer af­ter GST roll­out.

Talk­ing to ET, gold trade an­a­lyst Bhar­gava Vaidya said, “De­mand for gold is likely to rise as prices have fallen and are re­main­ing more or less steady. This is why the dis­count on gold has dis­ap­peared, and I do not see prices to fall dras­ti­cally from the cur­rent level. In­ter­na­tion­ally, it may come down from $1,250 per troy ounce to $1,230. There’s no im­me­di­ate trig­ger for prices to ei­ther rise or drop. There is not much geopo­lit­i­cal ten­sion in the world.” Mukesh Kothari, direc­tor, Rid­diSid­dhi Bul­lion, said, “Jewellers are buy­ing bul­lion to meet the or­ders they had booked at the show. More­over, they are also re­stock­ing to meet the up­com­ing festive sea­son de­mand.”

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.