Gold

Gold prices in last FY23 have jumped a massive Rs 8,000 in domestic markets from Rs 52,000 to Rs 60,000 which is a 15 per cent return, beating all other asset classes, said Jateen Trivedi, Vice President, Research Analyst, LKP Securities. Trivedi said gold still looks lucrative in terms of ROI from a safety perspective where the inflation still remains high globally and interest cycle which is yet to ease, will also provide the push needed for gold to run and give 10-15 per cent return in coming FY24.

According to Navneet Damani, Senior Vice President, Commodity Research, Motilal Oswal Financial Services, gold and silver prices witnessed profit booking after gaining by more than 1 per cent, on the back of steady dollar. "Broader trend on COMEX could be in the range of $1,970-1,995 (per troy ounce) and on domestic front prices could hover in the range of Rs 59,500-60,300 could be expected," Damani said.

"Gold prices have risen almost 7-8 per cent in the past month. The rally in the yellow metal is primarily due to the banking crisis in the west. The liquidity infused by the central banks and the expectations of lower to no rate hikes is pushing gold prices up. Gold is a safe haven, historically it has gained in periods of uncertainty," Colin Shah, MD, Kama Jewelry, said.

According to WGC, the unchanged custom duty in the Union Budget also bolstered wholesale restocking. Anecdotally, official gold imports are expected to rise in February following the anaemic 28-month low in January of just 11 ton. Anecdotally, official gold imports are expected to rise in February following the anaemic 28-month low in January of just 11 ton.

According to WGC, the unchanged custom duty in the Union Budget also bolstered wholesale restocking. Anecdotally, official gold imports are expected to rise in February following the anaemic 28-month low in January of just 11 ton.Improved market sentiment bumped local prices back into premium.

World Gold Council Regional CEO Somasundaram P.R. said that while the reduction in custom duty on gold from 12.5 per cent to 10 per cent is a right step, the hike in Agriculture Infrastructure & Development Cess has brought the overall duty to 15 per cent, same as before.

"While the reduction in custom duty on gold from 12.5 per cent to 10 per cent is a step in the right direction, the hike in the Agriculture Infrastructure and Development Cess has brought the overall duty to 15 per cent, same as before," Somasundaram P.R., Regional CEO, India at World Gold Council, said.

According to WGC, the US became the largest market for Indian gold jewellery due to additional tariffs on Chinese jewellery to the US, which made the Indian exporters more competitive. Secondly, the UAE's implementation of a 5 per cent import duty in 2017 and 5 per cent Value Added Tax (VAT) in 2018 have negatively impacted its competitiveness.

"The price of 24 carat gold is expected to touch Rs 60,000/10 grams in couple of days. On Monday, the price was Rs 58,550/24 carat 10 grams including taxes," Madras Jewelers and Diamond Merchants Association President and Challani Jewellery Mart partner Jayantilal Challani told IANS.

According to Quantum AMC's Fund Manager- Alternative Investments Ghazal Jain, gold prices are on uptrend since November 2022 amid moderating US CPI numbers and anticipation of a less aggressive Federal Reserve. The US dollar as well as US yields have begun to cool off, which has been supporting gold.