New Delhi: Gold was trading flat amidst positive trends in international prices. On the Multi-Commodity Exchange (MCX), June gold contracts opened at Rs 47,353 against the close of Rs 47,353. May silver futures were however trading down. Silver future for May delivery opened at Rs 68,456 per kg as against its close of Rs 68,684.
Gold edged higher on Monday, hovering near a seven-week peak hit in the previous session, as a weaker dollar and lower U.S. Treasury yields supported prices. Spot gold was up 0.1% at $1,777.33 per ounce by 0238 GMT, after hitting its highest since Feb.25 at $1,783.55 on Friday. U.S. gold futures edged 0.2% lower to $1,777.
The dollar index was languishing near a one-month low against its rivals, making gold less expensive for other currency holders.
Benchmark U.S. 10-year Treasury yields edged lower towards multi-weeks low touched last week. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
Elsewhere, silver fell 0.6% to $25.81 per ounce after hitting a near one-month high in the last session.
Gold imports rise by 22.58% to $34.6 bn in 2020-21
Gold imports, which have a bearing on the country’s current account deficit (CAD), rose by 22.58 per cent to USD 34.6 billion (about Rs 2.54 lakh crore) during 2020-21 due to increased domestic demand, according to the Commerce Ministry data.
Silver imports during the last fiscal, however, dipped by 71 per cent to about USD 791 million. Imports of the yellow metal stood at USD 28.23 billion (about Rs 2 lakh crore) in 2019-20, the data showed.
Despite growth in gold imports, the country’s trade deficit narrowed to USD 98.56 billion during 2020-21 as against USD 161.3 billion in 2019-20.