Gold prices had dropped to near one-month low on Friday. Gold rates in India include 10.75% import duty and 3% GST. Oil and gold are two key imports into India, accounting for 27.3% and 6.5% of total imports, respectively, according to Morgan Stanley.
Gold futures on MCX settled 0.4% lower at Rs 46,808 per 10 gram while silver dropped 0.9% to Rs 63,599 per kg. In India, the Gem & Jewellery Export Promotion Council’s Bangalore exhibition kicks off next week. In global markets, gold edged lower to settle at $1,790 an ounce amid uncertainty over the US Federal Reserve’s tapering timeline and a stronger US dollar.
The dollar index edge up 0.2% to 92.642 while benchmark U.S. 10-year Treasury yield rose after a measure of US inflation edged higher. On Friday, data showed the producer price index for final demand, a key measure of inflation, increased more than expected last month.
Among other precious metals, silver fell 0.9% to $23.86 per ounce, while platinum dropped 1.9% to $958.51 per ounce.