What to watch out for in the precious metals market

It is becoming increasingly difficult for investors to buy gold in India, even though there are many gold-selling websites offering the metal.

The Reserve Bank of India (RBI) is expected to announce on Monday that the RBI will allow foreign exchange traders to trade in gold, silver and platinum, which will give them the opportunity to profit from the surge in gold prices.

The RBI will also allow gold-buyers to buy precious metals such as gold and platinum at higher prices, with the RBI allowing gold to rise to the point of buying a significant amount of the metal at Rs 1,000-1,500 per ounce.

Gold is currently trading at Rs 2,800-3,300 per ounce, while platinum is currently selling for Rs 1.5 lakh-1.9 lakh per ounce in international markets.RBI has said it will allow traders to buy up to 100 tonnes of gold and silver by July 31, 2018, after which gold prices will revert to their normal level.

Roughly Rs 8,000 crore worth of gold bullion is being sold daily to investors, according to industry body Goldcorp India.

Goldcorp said it expects gold prices to recover from their current levels by July 1, with prices of silver and copper rising to their average levels.

Goldcorps chief executive Ashish Gupta said investors were looking to secure a large amount of gold by selling gold to buy silver, gold and copper.

He said gold bullions should not be considered an investment as it is a safe store of value, and it is important to have a minimum of gold as a reserve asset, including in foreign exchange reserves.

“The RBI decision to allow foreign exchanges to trade gold is welcome news and will provide the market with an additional source of liquidity,” Gupta said.

Gold has been one of the hottest currencies in recent months, with traders looking to buy bullion at its highest levels in recent times.

The Reserve Board of India has decided to allow gold to be traded in rupees and the Indian rupee to be used as a foreign exchange currency.

However, there are also certain restrictions on foreign exchange transactions, and many of these are currently being met by foreign exchange market players.

The country’s Reserve Bank has already taken steps to ensure foreign exchange investors can avail of the RBI’s approval to trade bullion.

The central bank said on Monday it will be issuing guidance to banks and brokers on how they can comply with the new rules.