Wholesalers in India offer bullion at a discount

This is first time in a month it is being done after gold’s recent price gains

Physical gold buying has waned in major Asian centres as bullion prices rebounded from recent lows, with dealers in India offering the metal at a discount for the first time in over a month as an uptick in local rates moderated demand.

In India, the world’s secondbiggest consumer of the metal after China, gold was being sold at a discount of up to $2 (Dh7.35) an ounce over official domestic prices last week, compared with a premium of $1 the previous week. The domestic price includes a 10 per cent import tax. “The market lost momentum due to the price rise. Buyers are waiting for prices to fall below $1,200,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata.

In the Indian market, gold futures were trading around Rs30,607 per 10 grams yesterday afternoon, up more than 4 per cent from their lowest level in seven months on August 17.