Gold prices declined marginally in the national capital on Tuesday. And silver became expensive. Today gold fell by Rs 36 and its price was Rs 45,888 per 10 grams. According to HDFC Securities, the price of gold in the previous session was Rs 45,924 per 10 grams. The rise in rupees against the dollar and international prices influenced gold.
Silver price rise
Talking about silver, during this period silver increased by Rs 73 and its price rose to Rs 61,911 per kg. It had closed at Rs 61,838 per kg in the previous trading session. In the international market, gold was trading flat at USD 1,788 an ounce while silver was flat at USD 23.68 an ounce.
$1.55 billion withdrawal from India-focused international funds, ETFs
According to a Morningstar report, for the 13th consecutive quarter, investors pulled out of India-focused international funds and exchange-traded funds (ETFs). Investors pulled out $1.55 billion from these funds in the June quarter. Whereas in the quarter ended March 2021, there was a withdrawal of $376 million from these funds. It is known that India-focused international funds and ETFs are very important among the major investment channels through which foreign investors invest in the Indian stock markets. The ETF segment saw a net inflow of $153 million. ETF inflows reflect weak investor interest in gold. A stronger dollar makes gold more expensive for holders of other currencies.
The country's gold demand declined by more than 35 percent to 446.4 tonnes in the last year i.e. 2020. The World Gold Council (WGC) report said that the situation is now returning to normal and the industry has been strengthened by continuous reforms. In such a situation, the demand for gold is expected to improve in 2021 this year.