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Reuters reported that gold discounts in India have widened this week on the back of sluggish demand. Dealers are being forced to offer discounts of $6 to $8 on the global spot benchmark, up from discounts of $4 to $6 last week.
Reuters reported that gold discounts in India have widened this week on the back of sluggish demand. Dealers are being forced to offer discounts of $6 to $8 on the global spot benchmark, up from discounts of $4 to $6 last week.
As quoted in the market news:
The value of India’s August gold imports jumped 140 percent from the same month a year ago to $4.96 billion, the trade ministry said this week. This followed a 62 percent jump in imports in July from a year ago to $2.97 billion.
Imports have been on the rise due to lower prices and expectations of robust purchases, but demand has been soft due to a weak monsoon.
“Anticipating robust demand everyone in the supply chain was buying last month. But demand is not as good as expected,” said Daman Prakash Rathod, director at Chennai-based wholesaler MNC Bullion.
“Now everyone is trimming purchases. Imports will be much lower this month.”
