Gold

Pent-up demand for gold started in 2021. "Even as the Fed is sounding more hawkish every day and Covid-19 is most likely behind us, demand for the yellow metal is getting support from higher inflation, market volatility, US-Russia tensions over Ukraine and the drop in Bitcoin," Mehta said in a report.

The total demand for the yellow metal was at 4,021 tonnes, excluding the "over the counter" figures. "Demand for gold in the consumer-driven jewellery and technology sectors recovered throughout the year in line with economic growth and sentiment, while central bank buying also far outpaced that of 2020. Investment demand was mixed in an environment of opposing forces: high inflation competed with rising yields for investors' attention," the council added.

According to the Ministry of Finance, the Sovereign Gold Bond Scheme 2021-22 (Series IX) will be opened for subscription during the period January 10-14, 2022 with settlement date January 18. "The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price to those investors who apply online and the payment is made through digital mode," the ministry said.

Last week, prices of physical gold rose by Rs 800 to nearly Rs 49,000 per 10 gm, according to Indian Bullion and Jewellers Association. On Tuesday, its prices largely remained range-bound. In addition, pent-up demand for the yellow metal for marriages and a relative weakness in the value of rupee will also somewhat keep its fundamentals strong, analysts said.

According to the Ministry of Finance, the Sovereign Gold Bond Scheme 2021-22 (Series VIII) will be opened for subscription during the period November 29 to December 3 with settlement date on December 7. "For such investors the issue price of Gold Bond will be Rs 4,741 per gram of gold."

Lately, gold prices, both in domestic and global markets, have risen steadily due to favourable broader market fundamentals. Accordingly, the last traded price of gold at the Multi Commodity Exchange of India (MCX) was Rs 49,159 per 10 gm. According to the India Bullion and Jewellers Association, the spot prices for pure gold stood at Rs 49,240 per 10 gm in the domestic market, which excludes GST and making charges.

As per the India Bullion and Jewellers Association (IBJA), gold sales on Dhanteras across the country this year was about 50 tonnes, valued at over Rs 20,000 crore, whereas it was Rs 12,000 crore in 2019. The IBJA's data showed that the average price of gold of 24-carat purity (999 purity) was over Rs 49,000 per 10 grams (with GST) which was lower than last year's price of around Rs 55,000 per 10 grams (with GST).

In 2021, prices of the precious metal have been trading between Rs 47,000 and 49,000 mark per 10 grams.According to Motilal Oswal Financial Services note, bullion have been in a consolidation mode from last Diwali to this Diwali, and in the past few months have witnessed some choppiness amidst volatility in US Dollar and bond yields.

Accordingly, the demand for gold in India for Q3CY21 rose 139.1 tonnes from 94.6 tonnes reported for the corresponding quarter of the previous year. Besides, the country's Q3FY21 gold demand value rose 37 per cent to Rs 59,330 crore on a YoY basis.

According to the Ministry of Finance, the Sovereign Gold Bond Scheme 2021-22 (Series VII) will be opened for subscription during the period October 25-29, and the settlement date has been set at November 2. "For such investors the issue price of 'Gold Bond' will be Rs 4,715 per gram of gold."