Gold rate today: Market scenario for the day

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Gold inched down on Monday on a stronger dollar, moving away from a 5-month high hit in the previous session, although geopolitical tensions continued to buoy safe-haven demand for the precious metal.
Spot gold was down 0.1 per cent at $1,252.20 per ounce by 0319 GMT, while US gold futures had dropped 0.2 per cent to $1,254.30.

Triggered by a stronger dollar, gold and silver prices on the Multi Commodity Exchange (MCX) were trading on a cautious note in early trade on Monday. However, geopolitical tensions capped the downside of the precious metals. Gold was trading 0.02 per cent down at Rs 28,678 per 10 gram around 10.20 am (IST), while silver was down 0.03 per cent at Rs 41,365 per 1 kg.

Gold may become costlier for Indians if the government accepts chief economic advisor Arvind Subramanian’s suggestion to put the yellow metal in the 12% tax bracket under GST. With an import duty of 10%, tax on gold may turn out to be 22%, which will reduce its consumption in the physical form in the second largest gold-consuming nation in the world.
Gold is poised to rally to levels last seen four years ago as rising inflation and negative real interest rates combine to boost demand, according to Incrementum AG, which says that the precious metal may be in the early stages of a bull market. Prices may climb to $1,400 to $1,500 an ounce this year, said Ronald-Peter Stoeferle, managing partner at the Liechtenstein-based company, which oversees 100 million Swiss francs ($101.5 million).

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