Business

Gold premiums rise as jewellers stock up to cash in on festive season

Gold premiums in India jumped to their highest in nearly three months this week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace.

migrator

Bengaluru

Dussehra celebrations fall on Sunday while Deepavali and Dhanteras are in November, when buying gold is considered auspicious. “Investment demand was good in the last few days. Retail demand for jewellery is still weak, but it could improve during the festive season,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji. On Friday, local gold futures traded at around 50,920 rupees per 10 grams. Prices hit an all-time high of 56,191 rupees in August. Dealers charged premiums of $5 an ounce this week over official domestic prices, inclusive of 12.5% import and 3% sales taxes, versus the $1 premiums last week. Jewellers have been banking on festive-season buying for a revival in demand and are offering lower prices, said a Mumbai-based dealer with a bullion importing bank.

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