Low bullion prices set to spur gold rush

​Hyderabad: Improved employment figures in the non-agriculture sector in the US, coupled with the dollar gaining strength steadily, brought down the gold prices globally during the week ended Saturday. Of late, Euro too has been strong while after the exit from the European Union, Britain’s pound sterling has taken a major dip recently. The observers, however, do not rule out the possibility of the continuation of a downtrend in the short-term. Standard gold closed at $1,250 (per oz).

At home, the lower prices of gold for the eight consecutive days bolstered confidence among buyers. Despite the restrictions on cash-buying, there has been a spurt in the demand. The Indian Bullion and Jewellers’ Association (IBJA) has launched a marketing project along with a private firm to mint gold coins with the name, numbers and photograph of the buyer or other symbols as a personal souvenir. The customised coins would be available through retail shops. There are plans to set up ATMs for dispensing these coins in select cities.

During the week, standard gold (24 carats) declined by Rs 1,240 (per 10 gms). After closing at Rs 31,440 on last Saturday, the yellow metal slided consistently and finally closed at Rs 30,200. Ornamental gold, too, moved downward and was quoted in the range of Rs 29,490 to Rs 29,590 (per 10 gms) on the closing day. Pure silver (0.999) also declined by Rs 3,400 (per kg) at the closing price of Rs 42,200 (per kg).

The unexpected decline in gold and silver prices in the wake of Dussera and Diwali has taken the potential buyers by a pleasant surprise. Therefore, the new gold rush during the festivals cannot be ruled out.Meanwhile, the Central Board of Direct Taxes (CBT) has announced that it would honour some 8.43 lakh honest tax payers by granting them certificates.

According to the scheme, tax payers who have paid Rs 1 crore and above towards tax will be given a platinum certificate, those who paid Rs 50 lakh to Rs 1 crore will be given gold certificate, those who have paid between Rs 10 lakh to Rs 50 lakh will be given silver certificate and tax payers who have paid tax amount between Rs 1 lakh and Rs 10 lakh will be given bronze certificates.

The sentiment in the principal wholesale commodity markets in the Osmangunj, Risala Abdullah, Begum Bazar, Kishan Gunj, Mukthya Gunj, Mir Alam Mandi, Dilsukhnagar, Bowenpally, General Bazar and Kukatpally was from moderate to strong. While staple food grains like rice, wheat, bajra, jawar and maize either remained unchanged or moved up marginally, channa, coriander and til seeds witnessed a spurt. On the other hand, turmeric, jeera, garlic, tamarind and chillies recorded a decline in the range of four per cent to six per cent.

Good rains all over the country have bolstered the hope of a bumper Kharif harvest. The sentiment in common vegetables was moderate. Potatoes, tomatoes, donda, cabbage, cauli flower, lady’s finger, beans, ribbed guard, kandha and leafy vegetables recorded a sizeable decline, thanks to the increased arrivals. The NECC wholesale egg price at Hyderabad remained unchanged at Rs 345 (per 100).