Gold prices held firm on Thursday after falling as much as 1 percent the previous day, with tensions surrounding North Korea and the upcoming French presidential election driving safe-haven demand amid a firmer dollar.
Spot gold was mostly unchanged at $1,278.64 per ounce at 0346 GMT. The metal fell 0.8 per cent on Wednesday in its worst one-day drop in over a month.
WHAT'S HAPPENING TODAY
The yellow metal was trading 0.17 per cent, or Rs 50, down at Rs 29255 per 10 kg around 10.25 am (IST), while the white metal was down 0.17 per cent, or Rs 73, at 41825 per 1 kg. According to SMC Investment and Advisors, bullion counter may witness volatile movement on mixed fundamentals on Thursday. However, Gold (June) can move in range of Rs 29,200-29,450 while silver (May) can move in range of Rs 41,500-42,300 in near term.
Gold traders are expecting Akshaya Tritiya sales to be better than last year on the back of lower year-on-year prices and a steady improvement in supply of cash at ATMs. Demand for gold on the April 28 Hindu festival, which some communities consider auspicious for buying gold, could also swell on buyers' fears that the goods and services tax (GST) could turn the metal costlier, they said. The current 1% VAT may be replaced by a 6% GST in addition to the import duty which stands at 10%.
GOLD REFINING PICKS UP
Gold refining activity has picked up in India after a gap of five months since the demonetisation in November. MMTCBSE 1.03 %, PAMP, the only London Bullion Market Association-accredited Indian refiner, said it was in response to a decline in smuggled gold, while others said the spike in demand from the upcoming wedding season and Akshaya Tritiya are the cause.
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