Gold were trading with slim losses during morning trade

 

Gold futures were trading with slim losses during morning trade in the domestic market on Friday as investors and speculators stayed on the sidelines as the European Central Bank (ECB) played down the need for further monetary stimulus despite clear signs that the recovery in the 19-member Euro area economy may be faltering, curbing the lure for the yellow metal, a hedge against the inflationary risk of monetary stimulus.

The Frankfurt-based central bank on Thursday refrained from expanding its QE program while leaving key interest rates unchanged.

Investors are now weighing whether the Bank of Japan will announce fresh easing measures when it meets this month.

At the MCX, gold futures for October 2016 contract is trading at Rs 31,200 per 10 grams, down by 0.01 per cent, after opening at Rs 31,245, against a previous close of Rs 31,203. It touched the intra-day low of Rs 31,190. 

Read more - Gold Updates

Jewellers Welcome Govt Decision On Excise Duty Exemption Limit

The government's decision to exempt small scale jewellers from Excise duty will give a boost to the trade, the gems and jewellery industry said as per the media report.

"On behalf of GJF, we appreciate the government's support towards the gems and jewellery industry. This will boost the trade as the industry was eagerly awaiting the clarifications on the levy of excise duty," All India Gems and Jewellery Trade Federation (GJF) Chairman said.

He also urged the government to further support the industry by raising the PAN card limit from the current Rs 2 lakh to Rs 10 lakh.

"This is surely a sigh of relief for the trade, as the government has simplified many procedural and compliance hurdles pertaining to the excise duty. We are hopeful that the government will soon issue notifications and circulars on all points considered and accepted," GJF Director said as per the PTI report.

Echoing the view, GJF Director said, "Many important issues has been accepted by the government for the betterment of the trade. We, as a federation, have also played a pivotal role during the entire excise matter and will always strive for progress, promotion and protection of the trade."

PNG Jewellers CMD  said, "The government has announced relief measures for gold jewellery industry to soften the impact of the excise duty levied in the budget."

In view of the upcoming festive season, Dussehra and Diwali, the government increasing small scale industry (SSI) eligibility will ultimately help manufacturers to cover the loss this season, he added.

The government yesterday increased excise duty exemption limit for small scale industry to Rs 10 crore from Rs 6 crore, waived the levy on sale of traded goods and relaxed various procedural norms.

Also, the Finance Ministry said no excise audit will be carried out, for the first two years, for units whose duty payment is less than Rs 1 crore (that is turnover of manufactured goods less than Rs 100 crore).

Gold Shines Amid fading Rate Hike Expectation For Today

 

Gold futures closed higher in the domestic market on Monday amid fading expectations of a US Fed's rate hike in the next couple of months and as investors digested the political and economic aftermath of Brexit.

Further, market players ruled out further rate hikes by the Fed this year in the aftermath of Brexit. In fact, futures markets are now reflecting a chance that the Fed could actually cut interest rates before the end of the year.

At the MCX, Gold futures for August 2016 contract closed at Rs 31,746, per 10 grams, up by 0.90 per cent after opening at Rs 31,600, against the previous closing price of Rs 31,463. It touched the intra-day high of Rs 31,850. 

 

 Read More - Gold Updates 

At Today’s Market Gold Rises On Economic Uncertainty

Gold futures closed higher in the domestic market on Monday as investors rushed to buy the metal in the wake of the U.K.’s decision to exit from the European Union. Gold tends to rally in times of economic, market or political uncertainty because precious metals are considered a haven asset.

At the MCX, Gold futures for August 2016 contract closed at Rs 31562, per 10 gram, up by 0.51 per cent after opening at Rs 31,450, against the previous closing price of Rs 31,401. It touched the intra-day high of Rs 31,740. 

Read More - Gold Updates