Gold premiums rise in India ahead of Diwali
(Kitco News) - Gold premiums are on the rise in India as jewellers prepare for the festive season. Although the COVID-19 pandemic has taken its toll on the nation some say that the festivities could be a welcome distraction to what has been a very tough year in India.
The country celebrates Dussehra on Sunday and Diwali and Dhanteras in November when buying gold is considered auspicious and gifts are given.
At an exchange rate of 74.00 USD/INR and GBP/INR 96.67. local gold futures traded at around 50,920 rupees per 10 grams. Prices hit an all-time high of 56,191 rupees in August. There has been about a $5 per ounce premium in the nation. Reuters also reported, 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.
This week there is still lots of uncertainty in the marketplace. COVID-19 cases are still on the rise in Europe as Italy and France announce new measures to curb the increase. There has also been a new outbreak in North-West China and this has caused the greenback to strengthen which has impacted the yellow metal at the start of the week. Elsewhere, US lawmakers are still working on passing the latest fiscal stimulus deal. It has been said over the weekend that a deal is moving in the direction and Pelosi remains optimistic that a deal can be done before the US election on 4th November.