New Delhi: Gold prices in India fell on Friday but for the week ended up with strong gains. On MCX, gold futures settled at 0.49% or ₹225 to ₹46610 per 10 gram but for the week gained about ₹1,200. The precious metals have rebounded from year-low levels of last week, supported by a rally in global rates and rupee’s depreciation against the US dollar.
Last week, gold had hit a one-year low levels of ₹44,100. India imports most of its gold requirement and prices include 10.75% import and 3% GST. The rupee on Friday fell for the fifth day in a row against the US dollar, tumbling to a six-month low of 74.73.
Gold had hit a record high of ₹56,200 last August. In India, gold ETFs saw inflows of ₹662 crore in March, the fifth consecutive month to see net inflows. For the overall fiscal year 2020-21, gold ETF inflows were at ₹6,919 crore.
Analysts say gold is drawing support at lower levels from rising covid cases and dovish monetary policy stance of global central bank. However, weighing on the precious metal is optimism about US economy and general progress on vaccination front as well as weaker investor interest and hardening US bond yield, they say.