On MCX, October gold futures fell 1.33 per cent to Rs 52,227 per 10 g. Silver September futures was at Rs 67,171 per kg.
On Tuesday (August 11), gold closed at $1,912 per ounce in the international market, 5.7 per cent lower than its previous day’s closing price. It has since recovered 1.8 per cent to $1,947 per ounce (Rs 52,662 per 10 grams in the Indian market).
The yellow metal’s extended bull run appears to have been halted temporarily. While gold prices might continue to climb, the journey henceforth could be more volatile. This week’s correction was triggered by the news of Russia registering a Covid-19 vaccine. Easing of US bond yields, firming up of the dollar index, and profit-booking by traders also contributed.
Meanwhile, a panel of state finance ministers on Friday veered around a proposal to levy 3 per cent GST on sale of old gold and jewellery to check tax evasion, according to Kerala Finance Minister Thomas Isaac.
The panel also decided to implement e-way bill for transportation of gold within the states, but implementing it for inter-state movement was not considered feasible. It decided to make it mandatory for gold and jewellery shops to generate e-invoice for every purchase and sale transaction. Bihar Deputy Chief Minister Sushil Modi said the panel reached a consensus on letting states decide whether to have e-way bill for intra-state movement of gold.