Gold discounts in India jump to highest in nearly 2 months

Gold discounts in India widened to highest in nearly two months as firm prices and end of the wedding season impacted retail demand. Dealers in India this week were offering a discount of up to $10 an ounce over official domestic prices, according to a Reuters report, up from the last week’s discount of $9. Gold prices in India include 10.

75% import duty and 3% GST. Weddings are one of the biggest drivers of gold purchases in India. Gold futures on MCX were today trading 0.

4% lower at ₹ 50,805 per 10 gram while silver dropped to ₹ 60,829 per kg. In May gold had dipped to near 2-month lows of ₹ 49,500 per 10 gram. In global markets, spot gold eased 0.

1% to $1,846. 30 per ounce ahead of crucial US inflation data. “The gold market remains trapped at around $1,850 an ounce and is not seeing any new buying momentum following weaker-than-expected labour market data.

Benchmark 10-year bond yields are also hovering above 3. 0% and restricting gains of the precious metals,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. Among other precious metals, spot silver rose 0.

2% to $21. 71 and platinum was down 0. 2% to $969.

62, while palladium rose 0. 6% to $1,935. 83.

“We expect gold and silver to remain volatile in today’s session ahead of the U. S. inflation data.

Gold has support at $1840-1830, while resistance is at $1862-1871. Silver has support at $21. 55-21.

35, while resistance is at $22. 05-22. 25.

In rupee terms gold has support at ₹ 50,740–50,510, while resistance is at Rs51,280–51,450. Silver has support at Rs61,050-60,650, while resistance is at Rs61,880–62,410,” he added. In a note Kotak Securities said: “Gold may continue to trade in a range as support from global growth worries and inflation concerns are countered by monetary tightening by major central banks.

However, with increasing focus on Fed meeting next week, the US dollar may remain supported and this may pressurize gold prices. ” MORE FROM THIS SECTION See All Premium Premium IRDAI allows insurers to launch new products without pr . .

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. Gold ETF inflows also show renewed buying interest however we need to see if the trend continues, the brokerage added. Another brokerage Geojit in a note said: “Choppy trading is likely in gold as long as prices stay below support of $1855.

Recovery rallies are anticipated only a break above $1868. ” For silver, “a direct dip below the support of $21. 50 would extend weak bias.

Else, there are chances of recovery upticks,” it added. TRENDING STORIES See All Premium Why Sensex fell over 1,000 points today Premium Wipro CEO among highest paid in IT sector. How his pay .

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