Low gold prices spark flurry of activity in India
NEW DELHI, Feb 28: Physical gold demand in India gained momentum this week as retail buyers and jewellers lapped up bullion at near eight-month low prices, while Singapore continued to see steady interest for both gold and silver.
Gold futures in India were trading around Rs 46,000 per 10 grams, not far from the eight-month trough of Rs 45,861 touched last week.
"Consumers are quite comfortable with current price level. There is good demand for jewellery from retail buyers," said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the city of Kolkata.
He added the Rs 50,000-mark is a psychological price barrier for Indian consumers.
Dealers charged premiums of about $4 an ounce over official domestic prices, inclusive of 12.5per cent import and 3per cent sales levies, versus last week's $7 premium, which was an eight-month peak. -Reuters