Gold discounts Rise to the Highest! - Report

Gold Discounts have peaked to the highest in about two months as per Reuters’ report. The discounts on gold rose up to $32 an ounce. The official prices include 12.5% of import duty and 3% of GST. Although, Jewellery shop owners have reopened stores in different parts of the country, the demand is at an all-time low in comparison to the same time around last year when gold imports plunged 99% in May.

Gold futures fell sharply on Friday to settle at ₹45,732 per 10 gram while silver rates slumped to ₹47,337 per kg.

Although oil price surged on Friday and gave hopes on the recovery of global economy amid the pandemic, the pressure on assets like gold and bonds are still intact. 

According to Bloomberg’s report, holdings in gold ETFs are still near a record high. As per the data  about 3,130 tons as of Thursday, up more than 20% so far this year.

“Meanwhile, the third tranche of sovereign gold bonds will open for subscription on Monday and will remain open till June 12. The issue price for Sovereign Gold Bond has been fixed at ₹4,677 per gram of gold. The RBI had in April had announced that the government will issue Sovereign Gold Bonds in six tranches from April 20 till September,” Livemint cited in its report.

The Reserve Bank of India is set to issue Sovereign Gold Bonds 2020-21 on behalf of the government of India. People who apply and make payments online will get a discount of ₹50 per gram on the nominal value.