Synopsis
Dealers believe increased demand for physical gold, ETF buying and exports will lend some support to prices in coming months.
Agencies
The demand for physical gold has already surpassed pre-Covid levels but the tax cut has not led to any instant demand in the physical market.
NEW DELHI: A 250 basis point tax cut and improving economic conditions have put pressure on gold prices, in both the physical and futures market, as the yellow metal is trading down nearly 5 per cent from its pre-Budget price.
Some analysts believe the precious metal may lose some more as rising yields and better than expected success in vaccination drive will lead money out of the non-yielding bullion. However, low level buying and wedding demand may provide some support.