13 Mar , 2021 By : kanchan Joshi
The correction in gold prices has triggered fresh retail interest in India. This however allowed dealers to charge higher premiums. On MCX, gold futures fell to Rs44271 at day's low on Friday, near a one-year low of Rs44,150 they touched earlier in the week. After the recent correction, gold is down about Rs12,000 from record highs of Rs56,200 hit in August last year. Even compared to the start of this year, gold is down about Rs6,000 per 10 gram.
Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers on gold, who remains positive on the precious metal, says that jewellery demand will provide support around current prices.
Dealers charged premiums of $6 an ounce over official domestic prices, inclusive of import duty and GST, compared with last week's premium of $5, Reuters reported.
Improved sales have led to jewellers replenishing inventory, Reuters reported, citing a Mumbai-based dealer.
Rising US bond yields, rollout of covid vaccinations and prospects of faster economic recovery have put pressure on gold prices. "Gold is looking weak below Rs44600. However RSI is showing oversold region at 31.45 mark. Any bounce near Rs45400 is the shorting opportunity for the coming week, In this case, trader must follow the stop-loss of Rs45,800 for the target of Rs43,800," said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
"US bond yield is increasing above 1.61% which is putting tremendous pressure on all the asses class. A stronger dollar index is also putting pressure on the gold prices, However it is suggested that do not make aggressive short position near this levels as market is oversold," he added.
The price correction has also seen investors putting money into gold ETFs. Investors pumped Rs491 crore in gold exchange traded funds (ETFs) in February. This came following a net investment of Rs625 crore in January and Rs431 crore in December. (With Agency Inputs)
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