Gold prices fell to its lowest level in 8-month in Friday’s trading, against the optimism over global economic recovery.
Prices then rose by $20 to $1784 an ounce from its low of $1,768, yet, headed for a weekly drop of 2.3% as major UK bond sales continued, and long-term interest rates went higher.
Data from Switzerland, the main refining center for gold, indicated that metal’s exports to India, world’s number two consumer in January, reached their highest levels since May 2019. Data also indicated that demand in world’s biggest consumer “China” is still on hold, amid its main buying season, the Lunar New Year holiday.
On the Shanghai Gold Exchange, prices fell to their lowest levels since April 2019 at 369 yen/gram, despite the yuan’s decline towards its lowest level.
Meanwhile, gold prices in India have maintained a premium in London every week so far in 2021.
New Delhi began trying to slash the household’s demand for gold
with additional fees and taxes, reporting rules and barriers on imports since 2013, despite recent cuts on duty.
However, the drop in the yellow metal boosted bring in India.