While the order was eventually issued, one Mumbai-based bullion trader said, ”Premiums are rising due to limited supplies. Banks are still not importing gold because of uncertainty over the applicable tax on gold.”
Dealers quoted premiums of up to $15 an ounce over official domestic prices this week, inclusive of 6% import and 3% sales levies, the highest since February 7. Last week, dealers quoted discounts of up to $4 an ounce and premiums of $14 an ounce.Indians celebrated Akshaya Tritiya on April 19, when gold purchases are considered auspicious, though demand was weaker than usual.
”Retail buying has slowed after the festival, but demand could improve if prices fall below 150,000 rupees,” said an Ahmedabad-based jeweller.
Domestic gold prices were trading around 151,200 rupees per 10 grams on Friday, after rising to a one-month high of 155,065 rupees last week.In top consumer China, bullion traded at premiums of $9 to $12 an ounce over the global benchmark price this week, up from last week’s premiums of $3 to $6.
”Gold is trading just around $4,700 this week,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
”At this level, you can see some renewed physical demand and fresh buying interest, leading to higher premiums in Shanghai.”
International spot gold prices were set for a weekly decline after a four-week winning streak, as elevated oil prices stoked inflation fears amidst the ongoing Middle East tensions.
In Hong Kong, physical gold traded at par to premiums of $1.80, while in Japan, gold was sold at par with spot prices.
In Singapore, gold was sold at discounts of $0.50 to premiums of $1.80, compared to premiums of $1 to $3 last week.
