Discounts offered by gold dealers in India this week widened to the highest in about two months, Reuters reported. Discounts on gold in India rose up to $32 an ounce over official prices that include a 12.5% import duty and 3% GST. Even though jewellers reopened stores in some parts of the country this week, physical demand was weak. Gold imports in May plunged 99% in May from a year earlier.
On MCX, gold futures fell sharply on Friday to settle at ₹45,732 per 10 gram while silver rates slumped to ₹47,337 per kg.
An unexpected jump in US employment sent world equities and oil surging on Friday on hopes that the global economy has started to recover from the coronavirus pandemic, putting pressure on perceived safe haven assets like gold and bonds.
However, holdings in gold ETFs are still near a record high, according to data compiled by Bloomberg to about 3,130 tons as of Thursday, up more than 20% so far this year.
Meanwhile, the third tranche of sovereign gold bonds will open for subscription on Monday and will remain open till June 12. The issue price for Sovereign Gold Bond has been fixed at ₹4,677 per gram of gold. The RBI had in April had announced that the government will issue Sovereign Gold Bonds in six tranches from April 20 till September.
Sovereign Gold Bonds 2020-21 will be issued by Reserve Bank India on behalf of the Government of India.
Those applying online and making payments online will get a discount of ₹50 per gram on the nominal value.
(With Agency Inputs)
This Gold discounts in India rise to highest in 2 months was originally published on https://www.livemint.com/money/personal-finance/gold-discounts-in-india-rise-to-highest-in-2-months-11591505110921.html