Mumbai: Physical buyers of gold in India, the world’s biggest consumer of bullion, remained on the sidelines even though traders offered discounts of up to $5 per ounce to global prices, with the demand outlook likely to be dull, players said.
“Everybody is selling, there is a discount of $4-$5 in the local market ... still there is a liquidity crisis, inflation is still high, savings are not there,” said Prithviraj Kothari, president of the Bombay Bullion Association.
HDFC Bank, a gold importer, was offering at Rs 29,040 per 10 grams, about 200 rupees higher than RiddhiSiddhi’s, a local gold supplier. The rupee has been trading recently at record lows against the dollar.
In the domestic futures market, gold and silver rose more than a percent, tracking gains on global markets, however.
The most-active December delivery gold contract on the Multi Commodity Exchange (MCX) traded 1.05% higher at Rs 28,707 per 10 grams, after hitting a high of Rs 28,735. December silver was 1.33% higher at Rs 55,052 per kg.