After a five-day decline, gold and silver futures prices rose in Indian markets today. Gold futures on MCX rose 0.4 percent to Rs 47,265 per 10 grams, while silver futures rose 1.1 percent to Rs 68534 per kg. Last week, gold rates in India reached a two-month high of 48,400. After this, the fall in international prices led to a lower price in the domestic market. Last year, gold reached a high of Rs 56,200 per 10 grams. The precious metal has struggled this year amid expectations of an economic recovery as US bond yields pick up and the pace of vaccination picks up.
Price so high in global markets
In international markets, gold rates rose as the US Federal Reserve maintained its monetary policy stance. The weak dollar also supported gold. Spot gold was up 0.2 percent at $ 1,784.94 an ounce. The dollar index dropped 0.5 percent. A weaker dollar makes gold less expensive for other currency holders. Among other precious metals, silver was up 0.6 percent at $ 26.34, while platinum was up 0.3 percent at $ 1,222.93.
Gold import reached Rs 2.54 lakh crore in the last financial year
In the last financial year 2020-21, gold imports increased by 22.58 percent to reach $ 34.6 billion or Rs 2.54 lakh crore. Gold imports affect the current account deficit (CAD). According to the Commerce Ministry data, gold imports have increased due to increasing domestic demand. During the fiscal, silver imports fell by 71 percent to $ 791 million. In the previous financial year 2019-20, gold imports stood at $ 28.23 billion. Despite an increase in gold imports, the country's trade deficit narrowed to $ 98.56 billion in the last financial year. It was $ 161.3 billion in 2019-20. Gems and Jewelry Export Promotion Council (GJEPC) Chairman Colin Shah said that gold imports are increasing due to increasing domestic demand.
India is the largest importer of gold
India is the world's largest importer of gold. Gold is mainly imported to meet the demand of the jewelry industry. India imports 800 to 900 tonnes of gold annually by volume. It is known that the government has reduced the import duty on gold from 12.5 percent to 10 percent in the budget.