18 Apr , 2022 By : Kanchan Joshi
Discounts on gold in India fell to their lowest level in two months amid an improvement in demand. Dealers in India last week offered discounts of up to $12 an ounce over official domestic prices, down from previous week's $40, news agency Reuters reported. Gold prices in India include 10.75% import and 3% GST.
Dealers, quoted in the report, attributed the narrower discount to lower March imports and lower scrap supplies, or the flow of old jewellery and coins. However, they said that firm prices could act as a dampener for demand during upcoming festivals and wedding season.
Gold rates in India settled at over one-month high on Thursday, when futures finished at Rs52,991 per 10 gram while silver at Rs69,100 per kg. In global markets, gold prices were also at over one-month high amid Ukraine-Russia war and elevated inflation.
“Recent US inflation data further strengthened the case for Fed’s aggressive monetary tightening. However, inflation concerns have also increased gold’s appeal as an inflation hedge. Gold is also supported by Russia-Ukraine fighting and increasing virus spread in China. ETF inflows also showed buying interest," said Ravindra Rao, Head of Commodity Research at Kotak Securities.
Bullion’s advance comes even as 10-year Treasury yields surge toward 3% on signs the Federal Reserve will take an aggressive approach in raising interest rates. Higher rates may weigh on non-interest bearing bullion.
Among other commodities, oil prices rose today on concerns over tighter global supply. The deepening crisis in Ukraine raised the possibility of further sanctions by the West on top exporter Russia. Brent futures were up $1.50, or 1.3%, at $113.20 a barrel and U.S. West Texas Intermediate futures rose 98 cents, or 0.9%, to $107.93 a barrel.
0 Comment