After the boom this month, the futures price of gold and silver fell in the Indian markets today. Gold futures on MCX reached Rs 47,352 per 10 grams, while silver futures fell 0.7 percent to Rs 68223 per kg.
Price so high in global markets
In global markets, gold was supported by a weaker dollar. Spot gold was up 0.1 percent at $ 1,777 an ounce. The dollar index rose 0.13 percent to 91.66, but it is near a one-month low. A weaker dollar makes gold less expensive for other currency holders. Among other precious metals, silver fell 0.6 percent to $ 25.81, while platinum settled at $ 1,203.61.
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.