Gold demand: On the Multi Commodity Exchange (MCX), gold futures opened at Rs. 58,542.00 per 10 grams, an increase of 1.14%. Silver futures, on the other hand, opened at Rs.71,185.00 per kilogram, an increase of 1.92% from the previous day's opening price.
In international trade, Gold prices remained steady on Friday as traders weigh the potential impact of strong U.S. economic data on interest rates and the Federal Reserve's policy decisions. Despite a slight decline in the previous session, spot gold was up by 0.13% to $1,930.47 per ounce.
India has increased its import duty on silver to align with that of gold. The duty has been raised from 12.5% to 15%, a move aimed at boosting the country's domestic production and curbing its dependence on imports. The government hopes that the increased duty will make imports of the metal more expensive, encouraging local producers to ramp up their production. Spot silver rose by 0.64% to $23.58 per ounce, platinum dropped 0.54% to $1,005.70 and Palladium increase by 2.13% to $1,684.63 as of 2:55 pm GMT.
The World Gold Council reports a 27% decrease in India's gold imports, with 673.3 tonnes imported in 2022 compared to 924.6 tonnes in 2021. The high import duty on gold is believed to have hindered imports through official channels. For 2023, the WGC forecasts a positive year for gold demand, potentially reaching the long-term average of 800-850 tonnes, subject to monsoon conditions and recovery in rural demand. In 2022, gold recycling in India saw a 30% increase, totaling 97.6 tonnes compared to 75.2 tonnes in 2021.
The International Monetary Fund (IMF) has increased its estimate for global economic growth in 2023 by 0.2 percentage points to 2.9%, compared to its October prediction. Despite this, it still represents a slowdown from the 3.4% growth seen in 2022 and is below the historical average of 3.8% between 2000 and 2019.
