Gold price down Rs 2,500 since Budget 2021
The demand for physical gold has already surpassed pre-Covid levels but the tax cut has not led to any instant demand in the physical market, quoting Prithviraj Kothari, National President of India Bullion and Jewellers Association (IBJA) ET report added.
“Demand is good, prices have gone down which is a relief to customers. Marriage season is here as well, so demand will be there but there is not going to be too much positive impact due to duty cut. There is not much free liquidity in the market,” Kothari said over a phone call.
2020 was the worst year for gold in the last 25 years. Demand for gold in India in the calendar year dropped to 446 tonnes as compared to 690.4 tonnes in 2019, as per the latest report released by World Gold Council (WGC). However, by the December quarter the demand had recovered to previous year’s levels.
“I think Rs 47,200 should hold as it is good support for gold. I do not think prices should go too much lower because there will be demand for physical gold in coming months,” said Manoj Kumar Jain, Director, Head - Commodity & Currency Research, Prithvi Finmart.