India Gold Premiums Eased, As Prices Crashed From The Peak

SEATTLE (Scrap Monster): The premiums on gold on domestic prices eased in India, as prices continued to fall from historic high levels. Also, the retail gold demand in the country continued to remain muted. The dealers have been charging premiums despite weak demand, amidst constrained supply on account of cancellation of international flights due to Covid-19 restrictions.

As per trade participants, the premiums on the yellow metal dropped by over $2 per ounce over the previous week from $4 per ounce to $2 per ounce. Over the week, gold price has receded by Rs 2,600 per 10 grams. The prices are down from the recent highs by approximately Rs 4,000. The dip in prices were very much in line with the fall in international gold prices, which recorded the first week-on-week decline in more than two months.

Meantime, the investment demand continued to remain buoyant in the month of July this year. The inflows into gold-backed ETFs almost doubled from Rs 494 crore in June to Rs 921 crore in July this year. However, the trade participants warned that the investment demand may likely remain affected by recent price volatility.

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The gold imports during the initial four month period (Apr ’20 to July ’20) of the current fiscal year registered year-on-year decline by 81% from $13.6 billion to $2.47 billion, said the recent data published by the Indian Commerce Ministry.