Gold dealers in India, the world's second largest consumer of the precious yellow-metal, continued to offer discounts for the fourth straight week as demand further took a toll due to the inauspicious 'Shradh' season.
However the quantum of discount receded to $30 per ounce over official domestic prices, inclusive of 12.5% import and 3% GST, in comparison to the last week's $40.
"Even during the festivals, demand will remain lower than usual due to higher prices," said a Mumbai-based dealer with a bullion importing bank.
Though a fall in global spot prices pushed demand for gold from buyers in Singapore.
"As long as prices come down, we'll see more buying," and many more clients are now looking at gold, Brian Lan of dealer GoldSilver said, adding, however, that retail purchases were muted.
Premiums were unchanged at $0.80-$1.50 an ounce versus the benchmark.
"Sales were respectable, but the lowest in the past four weeks," Vincent Tie, sales manager at Silver Bullion said. Nonetheless as we progress into the fourth quarter, discounts will narrow down.
Meanwhile, in Friday's trade (September 11, 2020), global spot prices weakened as the European Central Bank (ECB) provided no stimulus clue to tide over economic slowdown due to coronavirus outbreak.