Gold Sees Steady Gains, COMEX Futures Hold Above $1800 Per Ounce

Published on Feb 01, 2022 18:07

COMEX Gold futures continued to stay supported after a recent tumble in prices as traders eyed steady retail buying from India following the decline in spot prices last week. The Economic Survey 2021-22 states that the year ahead is well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of economy. India will witness robust growth supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending. Survey states that the Indian economy is estimated to grow by 9.2% in real terms in 2021-22, after a contraction of 7.3% in 2020-21. This is supportive for Gold and the COMEX Gold futures are currently trading up 0.62% at $1807 per ounce.

Finance Minister further noted in her budget speech today that to give a boost to the Gems and Jewellery sector, Customs duty on cut and polished diamonds and gemstones is being reduced to 5%. To facilitate export of jewellery through e-commerce, a simplified regulatory framework shall be implemented by June this year. To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per Kg is paid on its import.