India’s peak season of jewellery sales is just around the corner. This year, gold premiums have remained at a record high of $120 an ounce, owing to supplies falling shorter than demand, reports say.

The Indian government had levied certain norms in order to curb gold imports which it considered is one of the major contributor to the rising fiscal deficit. Also, the RBI ruling of 80/20 required importers to export 20 percent of what was imported, reports add. The scenario caused a dent in supply of the yellow metal as a result that jewellers are working to satisfy festive demand with the available stock and once it is exhausted replenishing it will be a task to deal with, reports suggest.