India's gold premium drops 82%

Touches $7 per ounce from around $40 per ounce
India's gold premium drops 82%

India’s gold premium has dropped almost 82 percent to $7 per ounce from around $40 per ounce, boosting consumer confidence, reports say. The drop in the premium follows a refreshed gold import activity, after almost two months, with traders looking forward to increased supplies, reports add.

India’s gold imports had come to a halt after the Reserve Bank of India had issued a 80:20 ruling in which 20 percent of the gold imported had to be exported. Confusion over how this rule would implement had led to gold importing agencies refraining from taking in the yellow metal, resulting in its pile up at the customs. To deal with this, meetings were held between the government and the gold traders, post which clarifications were obtained and gold has begin being released by the customs, easing supplies in the market, reports add. With the ease in imports, prices could take a dip too.

The industry is hopeful imports would resume by the season time, to cater both to the domestic and export demand, reports add.


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