Gold and Precious Metals

Early trade of Wednesday, gold silver prices decline

Gold silver prices today, July 13, 2022: Gold and Silver prices opened lower in the major spot markets of the country on Wednesday, July 13, 2022.

The 999 purity gold opened at Rs 50,656 per 10 grams, taking a drop of Rs 222 from Tuesday’s closing price of Rs 50,878, while the 999 purity silver opened at Rs 55,888 per kg, dropping Rs 209 from the previous close of Rs 56,097,  data available on India Bullion and Jewellers Association’s (IBJA) website showed.

Bullion Purity Opening price (Rs) Previous close (Rs)
Gold 999 50,656 50,878
995 50,453 50,674
916 46,401 46,604
750 37,992 38,159
585 29,634 29,764
Silver 999 55,888 56,097
Source: India Bullion and Jewellers Association (IBJA)

The gold contract for August delivery was trading at Rs 50,531.00 per 10 grams, up Rs 74.00 (0.15 per cent), on the Multi Commodity Exchange of India at 12:14 PM, while the silver contract for September delivery was trading at Rs 56,504.00 per kg, up Rs 38.00 (0.07 per cent) at the same time. 

Geojit Financial Services in their technical report on the MCX August gold contract said that a choppy trading session is on cards for the day, however, a direct drop below Rs 50,200 would trigger major liquidation pressure.

In an effort to control the current account deficit and rising gold imports, the Centre raised the import duty on gold from 10.75 per cent to 15 per cent, earlier this month. The standard customs duty rate for gold has raised from the previous 7.5 per cent to 12.5 per cent. In combination with the agriculture infrastructure development cess (AIDC), which is 2.5 per cent, will raise the actual customs duty on gold to 15 per cent. However, market analysts do not see this substantially impacting the demand for the precious metal in the mid to long-term period.

In the global market, spot gold was steady at $1,725.83 per ounce at 0543 GMT, after dropping to its lowest since late-September at $1,722.30 earlier in the session. US gold futures dipped 0.2% to $1,722.00, according to Reuters data.

Commenting on the bullion prices, Tapan Patel,  Senior Analyst (Commodities) at HDFC securities said, “Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1728 per ounce in the morning trade. Gold prices continued to be hammered by stronger dollar which rose to the highest level since October 2002. The market players are awaiting for US inflation data today which may gauge FRD stance over rate hike. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1710 and resistance at $1740 per ounce. MCX Gold August support lies at Rs. 50,100 and resistance at Rs. 50,800 per 10 grams.”

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