Demand for physical gold has witnessed a surge after prices dropped to multi-month lows last week. Gold
On Tuesday, gold futures on MCX for April expiry were flat with a negative bias at Rs 46,875 while Silver futures for March expiry were 0.08% higher at Rs 70,420 down by Rs 23 or 0.02%.
In the spot market, the yellow metal remained unchanged on Tuesday at Rs 49,530 per 10 grams while Silver prices were at Rs 69,200, up by Rs 1,300 per 1 kg in the national capital.
Spot gold prices vary across different Indian cities. For example, in Delhi, it is calculated based on a number of factors such as prices set by importers, bullion associations, banks and MCX futures prices. Prices also depend on different octroi charges, state taxes, transportation costs and the making charges in the physical market.
In the International market, gold jumped by 1.5% on Monday to near one-week highs as inflation expectations rise amid record-high equity valuations driving investors towards the safe-haven metal. A weaker US dollar further let support to the yellow metal.
“We are seeing investment flows into gold as market participants grow more anxious about rising real rates that can impact equity valuations,” TD Securities commodity strategist Daniel Ghali told Reuters.
The dollar index fell 0.4% to a more than one-month low, making gold cheaper in other currencies such as the Rupee.