Tuesday 26 August 2014

Gold premiums widen as jewellers stock up in anticipation of festival demand

Gold premiums, or prices charged by suppliers in excess of the gold rate, have increased to $8-11 an ounce from $3-4 since early last week, as jewellers stock up on inventory ahead of the festival season amid signs of a gradual pickup in consumer demand, said Sudheesh Nambiath, senior analyst, GFMS Thomson Reuters, a precious metals analytical company. 

Jewellers said that the decline in prices by around $27 an ounce over the past week also helped. Indian gold prices take their cues from the metal's overseas rate as the country imports much of its consumption. 

However, gold rose by 1 per cent to $1,289.06 an ounce as investors assessed the geopolitical impact of tensions in the Middle East and Ukraine.

On commodity exchange MCX, gold was up three fifths of a percent at Rs 27,950 ex-VAT. A stronger rupee limited the domestic rate rise in noon trades. 

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