Gold losing sheen on easing norms

Hyderabad (NVS): With the rupee gaining against US dollar, the gold price at home declined significantly. The white metal too, followed the suit and closed at lower levels. Meanwhile, easing of import restrictions on gold by the Reserve Bank also provided the much needed succor to the jewelery trade. However, it remains to be seen whether soft peddling on gold trade would impact gold smuggling which has, of late, assumed an alarming proportion.

Despite the overall decline of Rs 320 (per 10 gms) during the week that witnessed the highest crash of Rs 800 on Thursday, there were very few buyers. Obviously, the speculators are expecting yet further fall in the days to come. Trading community which stood like a rock behind the BJP before elections, now expects to be rewarded by the Modi government through sops. Until this happens, which is more likely than not, the gems and jewelery trade would be keeping its fingers crossed over its next policy move. In all probability, the first major move in the financial matters by the new government to have a new mechanism in place for arresting the menace of ‘bad’ money which includes money laundering, money used to fund terrorist and anti-national activities and of course, the most popularly known the black or unaccounted money staked within India or abroad.

In the capital city, standard gold (24 carats) closed at Rs 28,280 (per 10 gms) from the previous week higher closing mark of Rs 29,600. Similarly, ornamental gold also closed at the lower levels of Rs 27,610-27,710 (per 10 gms) from its previous week’s corresponding closing mark of Rs 28,910-29,010.