Gold in India trading at six-year high discounts

Physical gold dealers in India were forced to offer the steepest discount in six years last week to lure customers put off by a jump in domestic prices, with some people in top Asian hubs selling their bhttps://readselective.com/india/gold-in-india-tr…r-high-discounts/ullion to cash in on the rally.

Appreciating asset: Gold coins and bars sit on a tray inside a jewellery store in Mumbai. A bullion dealer says some consumers are selling their old jewellery to take advantage of elevated prices. — Bloomberg

Earlier last week, global benchmark spot gold prices rose to near an all-time high of US$2,020.47 (RM8,474.86) as investors sought refuge from uncertainties spurred by the Ukraine crisis.

Local gold prices in India, traditionally the biggest gold consumer after China, jumped to 55,558 rupees (RM3,036) per 10 grammes, not far from the all-time high of 56,191 rupees (RM3,071) hit in 2020.

The price surge hammered demand and prompted dealers to offer discounts as high as US$77 (RM322.98) an ounce over official domestic prices – inclusive of 10.75% import and 3% sales levies – versus US$27 (RM113.25) in the week prior to last week.

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