18-May-2024 12:15

COMEX Gold futures soared to one month high above $2400 per ounce, adding good gains in the week gone by. The Gold demand trend in India remains firm despite the recent surge in prices. The yellow metal is also eying a sustained drop in the US treasury yields and a generally uncertain geopolitical backdrop is also keeping it elevated. Gold had dropped under $2300 per ounce at the start of this month but there has been a very good recovery in the metal thereafter. India's Gold imports stood at Rs 25978 crore in value terms in April 2024, up 214% compared to April 2023. Gold imports soared on a monthly basis too, jumping by 104% compared to March 2024. Meanwhile, Reserve Bank of India (RBI) stated in a report that as at end-March 2024, the Reserve Bank held 822.10 metric tonnes of gold, of which 408.31 metric tonnes were held domestically. While 387.26 metric tonnes of gold were kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), 26.53 metric tonnes were held in the form of gold deposits In value terms (USD), the share of gold in the total foreign exchange reserves increased from 7.37 per cent as at end-September 2023 to about 8.15 per cent as at end-March 2024.

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