A surge in domestic gold prices to near-record highs impacted on demand, and high rates also discouraged buying in other key Asian centres, causing gold discounts in India to widen this week to their biggest levels in over a month.
After rising from a low of 90,890 rupees per 10 grammes last month and approaching the all-time high of 99,358 rupees, domestic gold prices were trading at about 98,300 rupees per 10 grammes on Friday.
Up from $31 last week, the price increase compelled Indian merchants to offer discounts of up to $56 per ounce below official domestic pricing, which include a 3% sales tax and a 6% import levy. Price increases have severely impacted demand. Harshad Ajmera, of wholesaler JJ Gold House in Kolkata, stated that hardly anyone was purchasing this week.
The monsoon season, which started earlier than normal this year, usually keeps India’s demand for gold muted. According to a private bank bullion dealer in Mumbai, jewellers are not buying since the season of low demand has begun and they do not want to accumulate expensive inventory.
Also Read:
Steven Looije: Offering Real Estate Expertise for Smart Investments With HUIS Real Estate
A Visionary Leader In Talent Acquisition And Advisory: Sanjeev Pradhan Roy
