Gold price in India swings to premium as easing restrictions lure buyers

Gold in India this week was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed.

Retail demand has been recovering slowly as people are making purchases for weddings, said Chanda Venkatesh, managing director of CapsGold, a bullion merchant based in the southern city of Hyderabad.

On Friday, local gold futures were trading around 47,400 rupees per 10 grams after falling to 46,330 rupees on Tuesday, the lowest level since April 9.

Dealers were charging premium of up to $3 an ounce over official domestic prices — inclusive of the 10.75% import and 3% sales levies — this week, compared to last week’s discount of $12.