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Gold may surge to Rs 40,000 per 10 gram by Diwali

Currently the October contract of gold was priced at Rs 37,995 per 10 gram on the Multi-Commodity Exchange (MCX).

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Mumbai, Aug 17 (IANS) Amid global growth concerns and heightened trade tensions between the US and China, gold prices might cross the Rs 40,000 mark by Diwali, analysts have said.

Typically, the demand for gold reflects the expectations about the future, the prices of the precious metal tends to rise amid uncertain economic situations or political upheaval.

Currently the October contract of gold was priced at Rs 37,995 per 10 gram on the Multi-Commodity Exchange (MCX).

“Demand for the precious metal may slow down slightly owing to some easing in trade tension between US and China, but over the trend is negative. We see gold prices around Rs 39,000 to 40,000 per 10 gram by Diwali, ” said Anuj Gupta of Angel Brooking.

Gupta explained that the gold prices were surging primarily owing to the decline in global growth rate.

Experts globally are also suggesting investments in gold and other precious metals amid these uncertain times as an insurance against economic uncertainty.

“We now recommend all investors have a full allocation to precious metal investments in their portfolio,” said a Gohring and Rozencwajg report.

“We believe the bear market in gold has run its course and a new bull market has begun.”

Lower interest rate by central banks and the ongoing trade dispute between the two biggest economies, the US and China, were supporting the gain in gold prices.

Besides, latest worry came over the recession warning via bond market. The inversion in the US bond yield hit levels last seen in 2007, just ahead of the global financial crises.

This came even as the US decided to defer the rise in trade tariffs it announced earlier as major export market showed renewed signs of weakness.

Europe’s biggest economy, Germany, reported negative growth, hence nearing the risk of a recession. The UK had already reported a contraction in growth amid Brexit woes and China added fuel to fire after it released weaker than expected factory data.

Investment firm Morgan Stanley had said that if the trade war further soared via the US further raising tariffs on all goods imported from China to 25 per cent, “we would see the global economy entering recession in three quarters”.

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Attack at Aramco, trade optimism to boost oil prices: Expert

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Mumbai, Sep 14 : Drone attacks at the world’s largest oil processing facility of Aramco in Saudi Arabia and the recent optimism in US-China trade relations could boost oil prices, analysts have said.

The drone attacks claimed by Yemen’s Houthi rebels set alight two major oil facilities run by the state-owned company Aramco in Saudi Arabia on Saturday, the Kingdom’s Interior Ministry said.

Owing to subdued demand and trade tension, Brent Crude declined for the fourth consecutive session on Friday.

Brent crude oil prices closed on Friday, slightly higher than the $60 barrel.

“News of attack on a major oil producer as well as the easing of trade tension will certainly boost the oil prices,” Anuj Gupta of Angel Broking told IANS.

However, experts noted that the global growth concerns could cap the gains in the oil prices.

The Saudi Press Agency, citing a statement by the Ministry, said that the drones caused the fire at the refinery in the city of Abqaiq in the Kingdom’s oil-rich Eastern Province, as well as the blaze at the Khurais oil field, around 150 km from Riyadh.

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Aadhaar compulsory for new dealers from January

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Bengaluru, Sep 15 : Verification of the unique identification number (Aadhaar) would be compulsory for new dealers from January 2020 to curb malpractices in paying Goods and Services Tax, said GST Network’s group of ministers’ Chairman Sushil Kumar Modi.

“All new dealers will have to submit their Aadhaar number for authentication from January 1. Though currently optional, it has been made mandatory from the New Year (2020) to curb fake invoices that came to light after the new tax regime came into being from July 1, 2017,” Modi told reporters here after a meeting of the group on Saturday.

Modi is also the Deputy Chief Minister in the Janata Dal-United (JD-U)-BJP coalition government in Bihar.

The GST Network has also decided to complete online refunding from September 24 from the central GST or the state GST.

“We have also decided to unveil the simplified new returns system from January 1,” said Modi on the occasion.

The next GST Council meeting will be held at Panaji in Goa on September 20.

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Govt sets up Rs 10,000 cr fund for housing projects

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New Delhi, Sep 14 (IANS) With a focus on completing construction of unfinished units, the government on Saturday opened a special window of Rs 10,000 crore fund to provide last mile funding for housing projects which are non-NPA and non-NCLT and are net worth positive in affordable and middle income category.

The government will also relax the ECB norms for financing home buyers of Pradhan Mantri Awas Yojana (PMAY) in discussion with RBI, Finance Minister Nirmala Sitharaman said.

She said the home buyers are already Operational creditors in case of NCLT stuck housing projects.

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