Gold prices fall to Rs 33,070 per 10 grams in Delhi today; 2 key reasons

Mumbai-India (Mar 7)  Amid muted global market and weak demand from local jewellers, gold prices fell Thursday in  Delhi. The rates of the yellow metal plunged by Rs 360 to Rs 33,070 per 10 grams at the bullion market in the national capital, news agency PTI reported citing traders.

Similarly on account of moderation in the offtake by the industries and coin manufacturers, silver prices also fell by Rs 520 to Rs 38,980 per kg. Even as rupee gained strength against the US dollar, the yellow metal came under pressure, traders also noted.

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The rates of yellow metal of 99.9 per cent and 99.5 per cent purities declined Rs 360 each to Rs 33,070 and Rs 32,900 per 10 grams, respectively.

In November last year, the government said that it would soon bring out an integrated gold policy and set up a domestic gold council to promote growth in the sector.

Commerce Minister Suresh Prabhu had said that the government is also looking at the industry’s demand for cutting import duty on gold to four per cent from the current 10 per cent.

“This is one of the important issues for the industry that is export-oriented. If you have import duties, the working capital gets blocked up. So, we are already working on that,” he had said.

“At the same time, the Finance Ministry has a responsibility to curtail the CAD (current account deficit), therefore, they are also trying to find out how we can keep the imports under control. So, we have to balance both together,” the Minister had then said.

FinancialExpress