Gold Looks Up And About On Hike In Import Duty - July 07, 2009

The gold prices recovered on the bullion market on Monday due to fresh local demand. Along with this, the silver also firmed up further owing to persistent demand from industrial users. The customs duty on silver has also been increased to Rs. 1,000 a kg from Rs. 500. In the domestic market, the standard gold (99.5 purity) shot up by Rs. 80 (10 gram) to Rs. 14,535 from previous weekend''s level of Rs. 14,455.

In line with this, the pure gold (99.9 purity) also firmed up with a similar margin to Rs. 14,605 from Rs. 14,525.

The silver ready (.999 fineness) hardened by Rs. 120 to Rs. 22,120 from Rs. 22,000 a kg previously.

Gold Prices Dropped - March 5, 2009

On 4th March, gold prices dropped for the second straight day on the bullion market due to fresh offerings led by weakness in overseas markets. Silver also continued to exhibit a downward trend on lack of demand at higher levels.

The market fell as illiquid cash market forced investors to reduce other asset exposure in order to meet margin commitments a dealer said. Gold was little changed in Europe as traders stuck to the sidelines ahead of a rate-setting announcement from the European Central bank and key US jobs data later in the week.

Investors are concerned over the lack of fresh inflows into gold backed exchange-traded funds in recent sessions. Spot gold was quoted at $915.00/916.20 an ounce as against $915.70 an ounce late in New York yesterday. Turning to the local market, standard gold (99.5 purity) dropped further by Rs 260 per ten grams to Rs 15,075 from Rs 15,335 yesterday. Pure gold (99.9 purity) also fell to Rs 15,140 from Rs 15,400 previously.

Silver ready (.999 fineness) moved down by Rs 130 per kilo to Rs 21,915 from Rs 22,045.

Gold Prices Are Expected To Touch Rs 17,000 - Feb 26, 2009

Gold prices are expected to touch Rs 17,000 per 10 grams by August, an industry body said on Feb 25. In the same way, silver prices would also climb to Rs 24,000 a kg by the same time, as assessment study by industry body Assocham said. Since global financial crises has diminished investment opportunities in stocks, mutual funds, government securities and bonds, investments in gold and silver would continue to grow and restrict at Rs 17,000 per 10 grams and Rs 24,000 a kg, respectively by August 2009, it said.

Nevertheless, gold and silver would subside to fall to realistic levels of Rs 12,000 per 10 gram and less than Rs 17,000 a kg by January 2010 onwards, it pointed out. The assessment on ''Prospects of Bullion Trade'' for the next six months, carried out by Bullion Trade Committee headed by bullion expert S K Jindal, anticipated that peak crisis in stocks, realty and other secured markets would gradually start fading away by August and until then, gold and silver will continue to lure investors for their surpluses. In March, the average gold price would go up to Rs 15,750 per 10 gram, while silver would stray at around Rs 23,000 a kg, it said.

Gold Prices Fell - Jan 21, 2009

Gold prices on Jan 20 fell by Rs 50 to close at Rs 13,320 per ten gram in the bullion market here backed by sustained selling influenced by a weak global markets and an off marriage and festival season. The standard gold and ornaments dropped by Rs 50 each at Rs 13,320 and Rs 13,170 per ten gram respectively. The sovereign also lost Rs 25 at Rs 10,725 per piece of eight gram. Apart from this, the silver ready dropped by Rs 90 at Rs 18,260 per kg and weekly-based delivery at Rs 18,160 per kg. In line with this, the silver coins continued to be asked at previous level of Rs 26,900 for buying and Rs 27,000 for selling of 100 pieces.

Marketmen said that the weakening trend in international bullion markets, which normally set prices in domestic markets here, recorded a loss of 11.71 dollar to 824.19 dollar an ounce. On the top of this the trading sentiment also turned weak following the reports that the precious metal in London declined for a second day due to strengthening of the dollar along with extended declines of crude oil, eroding the metal''s appeal as an alternative investment to the US currency and inflation hedge.