Latest News Gold which has been glittering since last year, faced one of its blackest days on July 23, with erosion of mind-boggling Rs 1,07,40,00,00,00,000 or Rs 10.74 lakh crore investors' wealth. The reason? Finance Minister's custom duty announcement on gold and silvers for Union Budget FY25.
Indian retail stores saw 24K of 100 grams fall by Rs 29,900, emerging as one of the biggest single-day falls in 2024. Meanwhile, MCX gold futures with August expiry, nosedived by over 5%. Yellow metals since the start of the current year, have been leading by 4.
24% compared to the equity-laden benchmark Sensex. YTD, 24K gold prices jumped by 16% versus Sensex which gained by 11.4% before July 23.
But MCX gold futures with the expiry of August 2024, outperformed both gold in retail stores and Sensex, by surging about 18.2% YTD. However, this changed on July 23, making the current month one of the most bearish periods of 2024 so far.
On MCX, gold futures with an August 5th expiry date, nosedived by eye-bulging by 5.8% to Rs 68,510 on July 23, compared to the price of Rs 72,718 in the previous day. And the volatility has only continued further.
On July 26, the short covering of MCX gold stood at Rs 68,186. YTD, the gains have been squeezed to now 10.8%.
Gold prices in retail have now witnessed gains of 8% from January 1 to July 27. While Sensex has now outperformed the billions with a YTD upside of 12.54%.
The deterioration of wealth in gold on July 23 has been one of the worst to witne.