Today, the price of gold and silver rose in the national capital in line with global markets. According to HDFC Securities, the price of gold in the domestic market rose by Rs 575 to Rs 49,125 per 10 grams. The yellow metal had closed at Rs 48,550 per 10 grams on the previous trading day.
Silver became costlier by Rs 1,227
Talking about silver, today the price of silver rose by Rs 1,227 to Rs 66,699 per kg as against Rs 65,472 per kg in the previous trading session. In the international market, gold and silver stood at the US $ 1,870.50 per ounce and US $ 25.83 per ounce respectively.
Gold increased by 25 percent in 2020
Gold has benefited from large-scale incentives in the year 2020 to counter Corona's economic impact. It has increased by 25 percent in 2020. Gold is seen as a hedge against inflation and currency decline. Talking about silver, it had increased by 50 percent during this period.
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 it improved significantly compared to lower levels in the second quarter of last year (April-June 2020). The report further noted that global economic growth will remain sluggish to its full potential for some time, but because of the stability in gold prices over the past few years, buying opportunities for consumers will increase. According to the WGC report, there is a possibility of economic recovery in countries like China, which suffered heavy losses in early 2020.
India is the second-largest buyer of gold
It is known that India is the second-largest buyer of gold after China. Gold attracts 12.5 percent import duty and three percent GST on gold in India. The flow of ETFs reflects weak investor interest in gold.