Physical gold rates swung to a discount in India this week as domestic prices surged above ₹51,000 in futures markets. In India, dealers offered discounts of up to $6 an ounce over official domestic prices amid weak demand, versus last week's $2 premium, Reuters reported. In futures market, gold prices soared to a record ₹51184 per 10 grams on Friday.
In India, domestic gold prices include 12.5% import duty and 3% GST. Some jewellers however expect gold demand to improve next month in India due to festivities.
On a weekly basis, gold rose about 4% in India while silver surged about 15%.
In global markets, gold crossed the $1,900 per ounce ceiling this week, the first time since 2011. A worsening US-China row has added to concerns about global economy that is already grappling with a resurgence in coronavirus cases in many countries.
Cautious investors shifted money into gold, driving its price to an all-time high of nearly $1,900 an ounce. The last record high for gold was set in 2011.
Despite the sharp surge in gold and silver prices this year many analysts remain bullish on these precious metals, citing unprecedented stimulus packages.
"European Union leaders have agreed upon an exceptional stimulus package worth $860 billion to pull their economy out of the corona black hole. And this move is expected to further accentuate the rally in gold, silver and other metals. Since this infusion is in addition to trillions of dollars announced globally especially by US, Japan and EU, gold and silver prices are further expected to reach newer highs in medium to long term," said Jimeet Modi, Founder & CEO Samco Group. (With Agency Inputs)