Gold premiums in India fall as COVID-19 bites again

Mumbai-India (Apr 26)  Premiums eased to about $2 an ounce over official domestic prices, inclusive of 10.75% import and 3% sales levies, from last week's $4. According to a Reuters report, a Mumbai-based dealer with a bullion importing bank said "Jewellers have been reducing purchases because of weak retail demand. It seems demand would remain weak for the next few weeks considering the way coronavirus cases are rising,". This was in stark contrast to last month (March), when Swiss monthly gold exports to India touched their highest since 2013, amid a gradual pick-up in demand. At the moment in China, premiums of $8-$10 were charged over benchmark spot gold prices, against $7-$9 last week.

 

Today the gold price trades higher after starting the European session soft they soon recovered. The price recently broke through the resistance level at $1767/oz and this could be a zone that might be retested. The bulls will be watching the previous wave high at $1798.4/oz as the buyers just lost momentum ahead of the $1800/oz psychological level.