1 min read.Updated: 29 Mar 2020, 08:21 AM ISTAgencies
The domestic price includes a 12.5% import tax and 3% GST
In India, trading came to a standstill as the country went into a three-week lockdown to curb the spread of coronavirus
Physical gold dealers struggled to meet surging safe-haven demand this week, especially in Singapore, as the coronavirus outbreak choked global supply chains, while massive discounts were offered in India amidst a lockdown.
In India, trading came to a standstill as the country went into a three-week lockdown to curb the spread of the virus, pushing discounts to their highest since mid-September, at $48 an ounce.
Spot gold ranged between $1,484.65 and $1,642.39 an ounce this week.
Gold market participants remained concerned about a supply squeeze following a sharp divergence in London and New York prices, as the coronavirus closed precious metals refineries.
"Many dealers are taking orders and giving two-week timelines for actual delivery, but the physical price for small denominations is trading over $1,800, a significant premium to the spot market," said Spencer Campbell, director at Precious Metals Consultants SE Asia Consulting in Singapore.
The uncertainty over prices, combined with lockdowns, kept activity muted in top consumer China, said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.
In China, gold was sold at discounts of about $10-$15 an ounce over the benchmark, while Hong Kong saw premiums of $0.20-$0.60.
Premiums of $0.50 an ounce were charged in Japan this week, a Tokyo-based retailer said, adding that however, domestic supplies should help the country see little impact from the refinery shutdowns, especially in Switzerland.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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