High discounts offered in gold by dealers who do not meet demand

(By commercial representative) Mumbai, Ta. Saturday, August 29, 2020

The local market closed behind the world market and saw a mixed flow in gold and silver. In private, the dollar was softening and crude oil was also weakening. In the Indian market, the discount on gold is being quoted at a five-month high above the official price due to declining demand for gold.

At home, the Mumbai gold and silver market was closed on Saturday. The price of ten grams of gold, excluding GST, rose to Rs 31,150 from Rs 305 in the previous session. Gold was trading at Rs 31,400, up from Rs 31,150. The price of one kg of silver, excluding GST, which was Rs 6 yesterday, was Rs 500 today in private. Prices with GST were quoted three per cent higher.

In the Ahmedabad market, gold was priced at Rs 600 per ten grams at Rs 2.50 and Rs 200 at Rs 4.50. Silver was trading at Rs 2,000 per kg.

Dealers are offering higher discounts than the official price as demand has not improved despite the fall in gold prices in the domestic market. In the Indian market, the discount, which was 50 an ounce at the end of March, rose to ૪૩ 8 last week.

In China, the discount, which used to be ડો 100, is now trading at થી 50 to ૬૫ 8.

At the end of the week, gold was trading at ૯૬૫ 16 an ounce, down ૯૬૨ 18 an ounce, while silver was down ૬૭ 2.50 an ounce from ૬૭ 4.5 an ounce. Platinum was trading at ૯૩૩ 8 an ounce of 50 an ounce, while palladium was up from ૨ 2,151 an ounce to ૨૨ 203 an ounce.

Crude oil was closing lower over the weekend. New York closed at ૯૭ 4.5 a barrel, while Brent closed at ૮ 4.31.

Meanwhile, the sixth series of gold bonds for the current financial year is opening on August 31. The price for this category has been fixed at Rs. 3111 per gram. Investors are turning to investing in gold bonds in view of the current high gold prices.