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(Wallace Refiners) – Gold dealers in India reported a narrower discount on gold to lower March imports and lower scrap supplies Discounts in the yellow metal in the nation 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 the previous week’s $40. Gold prices in India include 10.75% import and 3% GST.
Dealers said the narrower discount was due to lower March imports and lower scrap supplies, or the flow of old jewelry and coins. However, they said that firm prices could act as a dampener for demand during upcoming festivals and wedding seasons.
Gold rates in India settled at over a one-month high on Thursday, when futures finished at ₹52,991 per 10 gram while silver was at ₹69,100 per kg. In global markets, gold prices were also at over a one-month high amid the Ukraine-Russia war and elevated inflation.
Ravindra Rao, Head of Commodity Research at Kotak Securities “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,”
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