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Gold prices fall: Why yellow metal trades lower in Delhi today

FE Online

The gold prices on Friday traded lower at Rs 34,175 per 10 gram and silver fell by Rs 570 to Rs 40,930 per kg in Delhi Friday, news agency PTI reported citing All India Sarafa Association. Even as gold rates were subdued on weak demand, robust global trend overseas restricted the plunge, the traders told PTI.

The gold of 99.9 per cent and 99.5 per cent purities fell by Rs 5 each to Rs 34,175 and Rs 34,025 per 10 gram, respectively in Delhi today. While silver fell by Rs 570 to Rs 40,930 per kg, weekly-based delivery lost Rs 571 to Rs 39,829 per kg, PTI reported.

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

The Commerce Minister had said 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 also said.