Today, gold and silver futures fell for the second consecutive day. Gold futures on MCX declined by 0.2 percent to Rs 49,122 per 10 grams. Gold had lost 0.3 percent in the previous session. Talking about silver, today silver futures on MCX fell by 0.8 percent to Rs 66,150 per kg.
Price in international markets
Gold rates rose today after the unveiling of a 19 trillion stimulus package by Joe Biden in international markets. Jerome Powell, chairman of the US Federal Reserve, maintained his commitment to maintaining the monetary policy. Gold was supported by this. Spot gold rose 0.2 percent to $ 1,850.36 an ounce. Among other precious metals, silver rose 0.5 percent to $ 25.65 an ounce, while platinum closed at $ 1,116.
ETF flows reflect weak investor interest
The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.9 percent to 1,161 tons on Thursday, compared to Wednesday's 1,171.21 tons. Gold ETFs are based on the prices of gold and its price also decreases with the subsequent fluctuations in its price. The flow of ETFs reflects weak investor interest in gold. A strong dollar makes gold more expensive for holders of other currencies.
Today is the last day of the sovereign gold bond scheme
Investors can buy gold at a much lower price than the market price under the Sovereign Gold Bond scheme. The scheme was open for only five days (from 11 January 2021 to 15 January 2021). That is, today is its last day. Under the scheme, you can buy gold at Rs 5,104 per gram. That is, if you buy 10 grams of gold, then it costs Rs 51,040 and if the gold bond is purchased online, then the government gives an additional rebate of Rs 50 per gram to such investors. In this, payment for applications has to be made through 'digital mode'.
Economic demand may increase gold demand this year
According to a report by the World Gold Council (WGC), consumer sentiment is improving during 2021 in India with the recovery of the coronavirus epidemic, and demand for gold appears positive. According to the report, initial data for Dhanteras in November showed that demand for jewelry was below average, but improved significantly from the low of the second quarter of last year (April-June 2020).