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Nagpur: The yellow metal continued its bull run, crossing over Rs66,000 a tola before receding in the range of over Rs65,000 in the commodity futures markets. High prices have brought down demand, as jewellers are buying gold from bullion traders at a discount. For the consumers, the rate in Nagpur is at around Rs65,700 a tola before adding 3% as Goods and Services Tax (GST).
Rates in futures markets, which are like stock exchanges for commodities, are taken as a base for comparing the physical rate demand. These days bulk traders also quote prices through apps. Trade sources said on Friday the physical market apps had rates lower by Rs300 to 500 as against the commodity futures prices.
In trade jargon, gold is being traded at a discount. If the physical prices of gold are traded at a discount as compared to the commodity exchanges, it means that the demand is low as compared to the actual supply of the metal. At times, there is a premium, especially when the prices fall and buying increases, said traders.
On Friday, the commodity exchanges operated between 5pm to 11pm as against the usual morning hours, because it was a holiday on account of Mahashivratri. The gold rates opened on a high.
Nitin Khandelwal from the Gems and Jewellery Domestic Council said high rates have affected the demand in India. However, international trends, especially central banks buying, indicate an increasing trend, he said.
Rajesh Rokde, vice-president of the council, said traders are expecting demand will improve. Consumers may have been waiting to buy after rates come down. However, considering the trend, even they are expected to buy before the rates further firm up.
Deepak Thakkar, a trader at Akola, said poor rates of agri commodities have delayed release of pawned gold. Famers pledge gold to raise funds, and release it after harvest. But low cotton and soyabean rates have affected this.
Rates in futures markets, which are like stock exchanges for commodities, are taken as a base for comparing the physical rate demand. These days bulk traders also quote prices through apps. Trade sources said on Friday the physical market apps had rates lower by Rs300 to 500 as against the commodity futures prices.
In trade jargon, gold is being traded at a discount. If the physical prices of gold are traded at a discount as compared to the commodity exchanges, it means that the demand is low as compared to the actual supply of the metal. At times, there is a premium, especially when the prices fall and buying increases, said traders.
On Friday, the commodity exchanges operated between 5pm to 11pm as against the usual morning hours, because it was a holiday on account of Mahashivratri. The gold rates opened on a high.
Nitin Khandelwal from the Gems and Jewellery Domestic Council said high rates have affected the demand in India. However, international trends, especially central banks buying, indicate an increasing trend, he said.
Rajesh Rokde, vice-president of the council, said traders are expecting demand will improve. Consumers may have been waiting to buy after rates come down. However, considering the trend, even they are expected to buy before the rates further firm up.
Deepak Thakkar, a trader at Akola, said poor rates of agri commodities have delayed release of pawned gold. Famers pledge gold to raise funds, and release it after harvest. But low cotton and soyabean rates have affected this.
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