Gold Price still down Rs 11,500 from record highs

New Delhi: Though gold futures for April delivery on MCX started on a positive note on Wednesday, prices are still down by Rs 11,500 from its previous record high.

Gold futures for April delivery opened at Rs 44,800 per 10 gram on Tuesday against the previous close of Rs 44,646 while silver future for May delivery opened at Rs 65,139 per Kg against the previous close of Rs 64,972.

On Friday, the April futures of gold had managed to close above Rs 45,000 per 10 grams. In August 2020, the price of 10 grams of gold on MCX reached the highest level of Rs 56191. Last year, gold gave a return of 43%.

Gold imports, fell 3.3 per cent to USD 26.11 billion during April-February 2020-21, according to the commerce ministry data. Imports of the yellow metal stood at USD 27 billion in April-February 2019-20.

Gold imports have a bearing on the country’s current account deficit (CAD). The decline in gold imports has helped in narrowing the country’s trade deficit to USD 84.62 billion during the 11-month of the current fiscal, as against USD 151.37 billion a year ago.

India largest importer of gold

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonnes of gold annually.

International gold prices

Gold prices rose on Wednesday as U.S. Treasury yields held close to one-week low, with bullion shrugging off strength in the dollar following Federal Reserve Chairman Jerome Powell`s reassurance that inflation would not spiral out of control. Spot gold was up 0.3% at $1,731.75 per ounce by 0300 GMT. U.S. gold futures were up 0.4% at $1,732.70 per ounce, a Reuters report said.