Despite, gold being a precious metal, it is seeing a sharp rally this year, many analysts remain bullish. In Indian markets, jewellers have reported a surge in supply of scrap gold as people sell old jewellery, which prompts high in price as per the record. The Reserve Bank of India cut repo rate by 35 basis points. Since the last week of May, gold prices have risen sharply, propelled by increased safe have demand increase downside risks to growth and a worsening geopolitical situation.
Due to high in record gold prices have dampened the demand for the precious metal. For scrap supplies, as more people sell their oil ornaments prompted by high prices. Further reducing import requirements by scrap supplies. In last month the Government increased the import duty on gold to 12.5 %, from 10%.
At a time when domestic gold prices have hit record highs, the government is coming out with sovereign gold bonds. The issue price for Sovereign Gold Bonds 2019-20-Series-III for the investors applying online will receive a discount of 50 per gram.
Read EquityPandit’s Nifty Metal Outlook for the Week