Gold

This rise in gold imports can be attributed to low imports during the same period last year owing to the nationwide lockdown and the revived consumer demand in this financial year. During the same period last fiscal, gold imports stood at $687.83 million. As per data from the Commerce Ministry, import of the yellow metal in July also registered a nearly 60 per cent rise to $969.87 million.

Kshitij Purohit of CapitalVia Investment Adviser said: "LBMA Gold spot has resumed slightly gapped higher at $1,817.50, trading with positive momentum after sustaining above the support low of $1,795 in previous session. However, lower US Treasury yields in addition to concerns over the rising number of COVID-19 cases globally and its impact on the global economic recovery capped losses for the yellow metal."

The ruling was made in reference to the application filed by Aadhya Gold Pvt Ltd seeking clarity whether goods and services tax (GST) is to be paid only on the difference between the selling price and purchase price as stipulated under Rule 32(5) of CGST Rules, 2017, if the applicant purchases used or second-hand gold jewellery from individuals.

HDFC Securities' Senior Analyst for Commodities, Tapan Patel, noted that gold prices traded weak with COMEX spot gold prices were trading down near $1,823 per ounce on Friday. "We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 48,000 and resistance at Rs 48,500 per 10 gram," Patel added.

The Directorate of Revenue Intelligence (DRI) has seized a consignment of 100 kg of Gold Potassium Cyanide (GPC) worth Rs 32 crore at the Air Cargo Complex here. The consignment was being exported to Dubai by a Mumbai based firm. Based on prior intelligence, the DRI seized the consignment on Sunday.

A report by World Gold Council (WGC) said that inflows into North American and Asian funds were primarily offset by outflows from European funds. "Overall, the positive flows came in spite of significant gold price weakness in the latter half of the month on the heels of a relatively hawkish Federal Reserve (Fed) outlook, suggesting that investors may have taken advantage of the lower price level to gain long gold exposure," it said.

Currently, the August contract of gold on MCX is at Rs 47,882 per 10 gram, higher by Rs 583 or 1.23 per cent from its previous close. Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said that international gold prices rallied, giving breakout of short term resistance above $1,800 per ounce. The weaker dollar and economic growth concerns over higher oil prices.

Further, for the April-May period of FY22, import of the yellow metal stood at $6.91 billion, against $79.14 million worth of gold during the same period of last fiscal. Although the import of gold has recovered with improving demand, silver imports, on the other hand, have depleted. Silver worth $15.66 million was imported last month, 95.3 per cent lower on a year-on-year basis.

The '2021 Central Bank Gold Reserves (CBGR)' survey also noted that central banks are also increasingly valuing gold's performance during periods of crisis as this attribute now tops their rationale for holding gold. "These results come amid ongoing uncertainty stemming from the Covid-19 pandemic, a situation which has added significant complexity to central bank reserve management," said the report.

The settlement date under the Series II scheme has been fixed for June 1, 2021. The government in consultation with the Reserve Bank of India has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.