Gold prices drifted lower by Rs 200 to Rs 29,050 per 10 gm at Delhi bullion market , tracking a weak trend overseas amid tepid demand in the domestic spot market on prevailing cash crunch following demonetisation of high value notes.
Gold prices moved higher by Rs 179 to Rs 28,136 per 10 grams in futures trade Friday as speculators widened their bets taking positive cues from the global market.
There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance
Many jewellers estimate an 85-90 percent dip in business post-demonetisation -- but exports have been unaffected.
In an otherwise restricted activity, gold prices recovered by Rs 50 to Rs 29,450 per 10 grams at the bullion market Tuesday on scattered buying by jewellers and retailers even as the yellow metal weakened overseas.
With bullion market reopening after 16 days Monday, gold prices witnessed a massive plunge of Rs 1,750 to Rs 29,400 per 10 grams in the national capital, while silver slumped by Rs 3,100 to Rs 41,600 per kg.
Commerce and Industry Minister Nirmala Sitharaman has pitched for 'restriction free' imports of gold to help gems and jewellery exports and also discourage smuggling.
The government is not considering any proposal to restrict holding of gold by individuals, a top finance ministry source said Friday.
The government may impose curbs on domestic holdings of gold as Prime Minister Narendra Modi intensifies a fight against "black money".
Gold prices rose for a second day on Tuesday supported by an easing US dollar and physical buying in Asia.
Further relaxing cash withdrawal norms, the Reserve Bank on Monday said overdraft and cash credit account holders can now withdraw up to Rs 50,000 in a week.
Gold prices rose in Asian trade on Monday, snapping a 3-session losing streak, buoyed by physical buying after the metal slid to a 5-1/2-month low on Friday.
Gold and jewellery establishments in the national capital remained shut for the 8th day Friday after Income Tax Department on November 10 carried out surveys following reports of alleged profiteering and tax evasion by traders as government demonetised high value currency note.
Gold premiums in India jumped to two-year highs this week as jewellers ramped up purchases on fears that the government might put curbs on imports after withdrawing higher-denomination notes from circulation in its fight against black money.
Gold and jewellery establishments in the national capital remained closed for the 5th day today after the Income Tax Department conducted surveys following reports of alleged profiteering and tax evasion by traders and other operators in reported conversion of demonetised notes.
Gold jumped more than 3 percent to its highest in five weeks on Wednesday as Republican Donald Trump held slight leads in some battleground states in the race for the White House against Democrat Hillary Clinton, sending investors to safe havens.
Gold futures on the COMEX division of the New York Mercantile Exchange dropped on Tuesday, as investors largely waited on the sidelines ahead of the results of the US presidential election.
Traders said apart from a firm trend overseas, increased offtake by industrial units and coin makers at the local spot market led to a recovery in silver prices.
India's gold demand declined by 28 percent to 194.8 tonnes in the third quarter this year mainly due to higher prices, not so recovered rural wallet and regulatory changes, World Gold Council's said in its latest report.
Gold prices rose for the fifth session in a row, by gaining Rs 100 to Rs 31,150 per ten gram today, supported by a firm global trend and wedding season demand from jewellers.