Gold price today fell to Rs 48,220 from Rs 48,390, while silver price was trending at Rs 66,600 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
In New Delhi, the price of 22-carat gold slipped to Rs 44,200 per 10 gm, while in Chennai it fell to Rs 42,120. In Mumbai, the rate was Rs 43,800 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 45,950 per 10 gm.
Gold imports, which have a bearing on the country’s current account deficit (CAD), fell 3.3 per cent to USD 26.11 billion during April-February 2020-21, according to the commerce ministry data.
Imports of the yellow metal stood at USD 27 billion in April-February 2019-20.
In the international market, Gold prices fell 1% on Monday as investors opted for alternative safe-haven assets such as the U.S. dollar and bonds after Turkey’s abrupt decision to replace its central bank head with a critic of high interest rates sparked financial uncertainty.
Spot gold slipped 0.8% to $1,730.45 per ounce by 0853 GMT, having dipped as much as 1% earlier in the session. U.S. gold futures were down 0.7% at $1,729.60 per ounce.
“This morning when the Turkish Lira fell out of bid, we might have seen gold benefiting with the dollar and Japanese yen but that’s clearly not the case,” said Michael McCarthy, chief market strategist at CMC Markets.
“The stronger dollar seems to be the major driver for gold market at the moment with the currency moves … It appears that U.S. dollar and yen remain the favourite choices.”
Turkey President Tayyip Erdogan replaced a hawkish central bank chief with an opponent of tight monetary policy on Saturday, in a shock move that raised concerns about the impact on other financial markets and supported the dollar as a safe-haven currency.
Gold, which is priced in dollar, also lost safe-haven flows to the yen and bonds.