India gold discounts hit a near-decade high currently

Gold discounts in India widened this week to their deepest point in nearly a decade as demand stayed subdued and some traders steered clear of paying import duties, while escalating Middle East tensions boosted safe-haven demand in China. A few importers are declaring gold as platinum-studded jewellery at customs even though it contains more than 90% gold. They can sell this duty-free gold at a sharp discount,” says a Mumbai-based bullion dealer.

Meanwhile, in top consumer China, bullion traded at premiums of $20-$30 an ounce over global benchmark prices this week, sharply above last week’s $13-$15 premium. ” No new import quotas have been issued so far in March, restricting inflows of physical gold. The PBOC’s dual strategy – steady reserve accumulation combined with tight quota control- keeps the domestic market resilient yet constrained,” said Bernard Sin, regional director of Greater China at MKS PAMP.