Gold Price in India Today
The gold prices in India today stood at Rs 1,21,660 on Monday. Spot gold slipped below $4,000 an ounce after China removed a long-standing tax rebate for certain retailers, a move expected to weaken demand in one of the world’s largest precious metals markets.
Bullion declined by up to 1% in Asian trading on Monday. Over the weekend, Beijing announced that some retailers would no longer be able to offset a value-added tax when selling gold purchased from the Shanghai Gold Exchange or Shanghai Futures Exchange, regardless of whether the metal was sold directly or after processing.
Impact of China’s Tax Rebate Removal on Gold Prices
The metal had surged to a record high in early October amid a wave of retail buying before dropping sharply in the latter half of the month. Despite the correction, prices remain over 50% higher year-to-date, supported by strong central bank purchases and safe-haven demand, which are expected to continue.
According to Adrian Ash, Director of Research at BullionVault, “Although Chinese gold demand has not been a major factor in this year’s record rally, the new tax rules in the world’s largest gold-consuming nation could dampen global sentiment.” He added, “This development might be welcomed by traders and investors looking for a deeper correction following last month’s surge.”
Gold Prices in Major Indian Cities
In New Delhi, the price stood at Rs 1,21,230, per 10 gm, and in Mumbai, it stood at Rs 1,21,440 on Monday.
In Bengaluru, the rate stood at Rs 1,21,540, while in Kolkata, it was Rs 1,21,280 per 10 gm. The price of the precious commodity was the highest in Chennai, trading at Rs 1,21,790 per 10 gm.
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Futures and Spot Prices
The Dec. 5 futures stood at Rs 1,22,325 according to the Multi-Commodity Exchange. The spot prices of the yellow metal rose to $4,001 on Monday, according to the World Gold Council.
The precious metal’s price was trading at Rs 1,48,860 per kilogram on Nov. 3, according to the India Bullion Association.
Dec. 5 futures for silver were trading higher at Rs 1,48,287, according to the Multi-Commodity Exchange.
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Conclusion
In conclusion, the removal of China’s tax rebate for certain retailers has led to a decline in gold prices in India. However, prices remain over 50% higher year-to-date, supported by strong central bank purchases and safe-haven demand.
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