Premium gold in India remained near record levels on Tuesday because of increased in domestic demand and poorly supplied, exporters have given priority over shipments.
“Demand is picking up and supplies have dried up… jewellers are not prepared to pay the hefty premium of $120 (an ounce)” said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
Gold imports for domestic use are linked to exports under the new rule 80/20, as embattled government attempts to curb running record trade deficits.
At 0852 GMT, the most active gold futures for December delivery on the Multi Commodity Exchange (MCX) was 0.19 percent lower at 29,700 rupees per 10 grams. Silver for February delivery on the MCX was 0.77 percent lower at 48,801 rupees per kilo.