Current Affair 1:

Demand and Supply of Gold in India

 

Determinants of domestic gold prices in India

Daily auctions of precious metals like gold, silver, palladium, and platinum take place in London and the London Bullion Market determines the ‘spot price’ of per ounce. It is a fluctuating market price for an asset bought or sold on commodity exchanges contracted for immediate payment and delivery. A nominal transaction charge is added by importing banks, which when added to the spot price determines the metal value.

This metal value in US dollars is converted to Indian Rupees based on the exchange rate. Adding the customs tariff for this metal value gives the ‘landed price’.

Once this landed price is arrived at, depending on the government policies, seasonal trends, and market conditions, the Multi Commodity Exchange of India Limited (MCX) and National Commodity and Derivatives Exchange Limited reflect the spot price in the Indian context.

Taxes such as GST are levied on gold bullion and jewellery before any production.

Adding to this, the final consumers bear the wastage charges, making charges, and production costs. GST is also applicable on the making charges and wastage charges. The cumulative of all these factors is the domestically determined gold price. Prices could vary above the determined price depending on the sellers’ charges and discounts.

Demand and Supply of Gold in India

It is a common understanding that the dynamics of demand and supply influence the pricing of any good. However, as stated earlier, the pricing of gold is influenced by a wide variety of factors such as inflation, currency exchange value, market conditions, and people’s preferences.

The chart below depicts the demand and supply of gold in India as per the data of the World Gold Council. It can be seen that except for the year 2016, the supply of gold exceeded the demand for gold.

 

India is one of the largest importers of Gold. The foreign market affects daily fluctuations in gold prices. Data shows that whenever the value of the Indian rupee depreciates, gold prices generally tend to increase. However, this is not an exact correlation as other factors might also impact the pricing of gold.

For instance, during 2006-07 to 2007-08 and 2007-08 to 2009-10, the value of the rupee appreciated from 45.2 to 40.3 and depreciated from 40.3 to 46 respectively. However, the gold prices during the same corresponding period rose from Rs. 9240 to Rs. 9995 to Rs. 12890. Further, between 2011-2012 and 2012-13, the value of the rupee depreciated from 47.9 to 54.4, while the price of gold jumped from Rs.25,722 to Rs. 30,163. However, from 2012-13 to 2013-14, the value of the rupee depreciated from 54.4 to 60.5, while the price of gold decreased from Rs.30,163 to Rs. 29,190.

 

Current Affair 2:

National functions on Republic Day

 

The Constitution was adopted by the Constituent Assembly on 26 November 1949 and came into force on 26 January 1950 with Dr. Rajendra Prasad unfurling the National Flag after a salute of 21 guns declaring India a Sovereign, Democratic and Republic state.

Among other events, a cultural parade that involves tableaus and cultural performances from various states is held from Raisina Hill (near the President’s residence- Rashtrapati Bhavan), along Rajpath (now known as Kartavya Path), past India Gate.

The Ministry of Defence is primarily responsible for the conduct of national functions like the Republic Day Parade (RDP), the Beating Retreat Ceremony in coordination with various executing agencies. The Ministry starts the selection process for tableaux by writing letters to all the Chief Secretaries/Administrators of state governments & union territories, central government departments, and a few constitutional authorities to participate in the parade.

An expert committee constituted by the Ministry of Defence consisting of prominent persons in the field of art, culture, painting, sculpture, music, architecture, choreography, etc. evaluate the proposals and put forth their recommendations.

Relevant guidelines like theme, dimensions, facilities provided, initiatives to be included, etc. are provided in the letter.

Due to time constraints arising out of the overall duration of the parade, only a limited number of tableaux are shortlisted for participation in the parade. For instance, in 2022, only 12 out of 29 proposals from states/UTs were selected whereas, in 2021, 17 out of 27 proposals were shortlisted for the final parade.

Current Affair 3:

Leprosy

 

To aid the fight against Leprosy in the country and to create awareness about the disease India is marking National Anti–Leprosy Day on January 30. India has set a target of eliminating the disease completely by 2027.

 

Current Affair 4:

Scientific Study on Sea Erosion in Kozhikode

 

News:

A team of experts has begun a scientific study to prepare a proposal on protecting the 3.5-km stretch of coastline from Thuvvappara at Kappad beach to Valiyamangad near Koyilandy, in Kozhikode district.

 

Kappad is the only beach in Kerala with the international Blue Flag certificate awarded by the Foundation for Environmental Education. The award is given to beaches that meet strict guidelines on ensuring eco-friendly measures, safety and hygiene, among others.

The study comes against the backdrop of the Kerala government zeroing in on the stretch as one among the 10 hotspots in the State that are facing the threat of sea erosion. The coastal road from Kappad to Koyilandy harbour is in a bad shape after high tides swept the area in the past two years. This has also reportedly affected the tourist inflow to the beach.

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