Gold

According to Damani, the Comex Gold has made a high of about $1,935 and a low of about $1,630, while silver on other hand made a high of about $25 and low of about $18. There are few factors which triggered volatility in the market like, move in Dollar Index & yields, aggressive monetary policy stance from major central banks, rising inflationary concern, geo-political tension, which led to this volatility.

Gold prices in the US bullion market rose to $1,823, up by 1.73 per cent and silver prices rose to $24.09, up by 1.03 per cent over previous close, mainly due to long term speculations over rate hikes by US Federal Reserve. The US Federal Reserve is expected to announce another round of hikes in its first meeting in the new year, scheduled for February 1, 2023.

The SGBs will be sold through scheduled commercial banks (except small finance banks, payment banks and regional rural banks), Stock Holding Corporation of India Ltd (SHCIL), Clearing Corporation of India Ltd (CCIL), designated post offices and recognised stock exchanges, namely the National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd.

The fall in gold prices was a result of higher-than-expected September readings of US Consumer Price Inflation (CPI) and US Core Personal Consumption Expenditure (Core PCE) at 8.2 per cent and 5.1 per cent, respectively, which increased investor anticipation of aggressive policy moves by the US central bank, Quantum AMC said.

According to the WGC, the gold demand in India was at 191.7 ton (value Rs 85,010 crore) during Q3 2022 as against 168 ton (Rs 71,630 crore) of the corresponding period in 2021. The jewellery demand for the period under review was at 146.2 ton up from 125.1 ton the previous year.

In a statement issued on Monday, Quantum AMC said the correction in the gold prices from the peak has made the metal affordable this festive season. "To make the most of the correction, we recommend investing in efficient products such as gold ETFs (exchange traded funds) to maximize the benefits," Quantum AMC said.

The interesting aspect of The Sovereign Gold Bond scheme is that if investors apply and pay for it online, then Reserve Bank of India (RBI) is offering Rs 50 per gram discount. The application for gold bonds will be open till August 26, the central bank said.

Value-wise India's second quarter (Q2) 2022 gold demand value was Rs 79,270 crore, an increase of 54 per cent in comparison with Q2 2021 (Rs 51,540 crore). Total jewellery demand in India for Q2 2022 was up by 49 per cent at 140.3 tonnes as compared to Q2 2021 (94 tonnes). Globally in the jewellery sector, Q2 gold demand increased 4 per cent year-on-year to 453 tonnes, helped by a recovery in Indian demand, up 49 per cent compared with Q2 2021.

He also said 80 per cent of the demand will be for jewellery and the balance in the form of gold coins. The gold demand in India for 2022 will be above 800 tonne. It will be between 800 tonne to 850 tonne. The 5 per cent duty hike on the gold by the Central government will not have any major impact on the demand for the yellow metal, said Somasundaram P.R., Regional CEO India, World Gold Council.

Nor the duty hike will result in any increased smuggling activity of the yellow metal, he added. On Thursday, the central government increased the customs duty on gold from 10.75 per cent to 15 per cent to curb gold imports. The government said, there has been a sudden surge of gold imports. In May, a total of 107 ton of gold was imported and the import volume last month was also significant, the government said.