Gold Discounts In India Touch 8-Month High As Demand Hit Amid Record Prices – News18
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Indian dealers this week offered a discount of up to $39 an ounce over official domestic prices, including 6% import and 3% sales levies, up from a discount of $10 to $21 last week.
Gold price in India has hit a record high of 87,886 rupees per 10 grams.
Gold discounts in India widened this week to their highest point in nearly eight months, as a surge in prices to a record high dampened demand, while customers in other key hubs also remained on the sidelines.
“Jewellers all over are seeing fewer customers. Demand’s taken a big hit because of rising prices,” said a Chennai-based bullion dealer. Domestic gold prices hit a record high of 87,886 rupees per 10 grams on Thursday.
Indian dealers this week offered a discount of up to $39 an ounce over official domestic prices, including 6% import and 3% sales levies, up from a discount of $10 to $21 last week.
“Jewellers are not keen on building high-cost inventory at the end of the financial year, as they are busy closing accounts,” said a Mumbai-based dealer with a bullion-importing bank. India’s financial year runs from April until March 31.
India’s gold imports are set to tumble 85% in February from year-ago levels, reaching their lowest levels in 20 years, as demand is dampened by record-high bullion prices.
In China, the world’s largest consumer, gold traded at a discount of $1 to an $18 premium over spot prices. Meanwhile, dealers in Hong Kong charged premiums ranging from par to $2 per ounce.
“China’s market is wavering between a discount and a premium,” Standard Chartered analyst Suki Cooper said in a note.
“The physical market has provided a weaker footing for gold … China’s markets have slowed amid high prices, underscoring the macro drivers.”
In Japan, bullion was sold between a discount of $3 and a premium of $0.5, a trader said.
“The market has been choppy and volatile due to Trump’s policies, and it seems investors stay on the sidelines till the trend is clear,” said a Japanese trader.
In Singapore, gold traded between a $0.50 discount and a $3 premium, a trader said.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)
