Gold sells at a premium for first time in 9 months

MUMBAI: Gold prices in India swung to a premium for the first time in nine months on Wednesday as jewelle rs and dealers in the world’ s No .2 consumer of the metal ramped up purchases ahead of major festivals.

Dealers were charging up to $2 (₹134) an ounce over official domestic prices, the first time premiums have been seen since mid-January, said Bach hr ajB am alwa, director at the All India Gems and Jewellery Trade Federation.

Gold importers havepremiums to mitigate risks they take due to currency and price fluctuations, but was trading at a discount for most of this year due to weaker-than-usual demand and a rise in smuggling.

Discounts hit a record high of $100 an ounce in July.

“In the last 10 days, demand has improved due to festivals. The correction in prices is helping to attract buyers,” said Bamalwa.

Gold prices in India have fallen over 8% since hitting a peak of ₹32,455 ($485) per 10 grams in July, the highest level in nearly three years.