Gold discount in India: Dealers continued to offer discounts from official domestic prices in India, although discounts moderated. Traders offered discounts of up to $45 an ounce on official domestic prices, down from discounts of $77 last week, Reuters reported. Gold discount in India after sharp price fall.
Gold prices in India include import tax of 10.75% and GST of 3%. On Friday, gold futures on MCX closed 0.33% lower at $51475 for 10 grams while silver in $67950 per kg. Indian gold prices rose to $55,558 per 10 grams earlier this month, not far off the all-time high of $56,191 hits as of August 2020.
Although bullion rates have dipped off highs, volatility dampened retail appetite for physical gold in India this week, according to the report. “The fighting between Russia and Ukraine has entered the fourth week and Western countries have continued to put pressure on Russia. On the other hand, talks between Russia and Ukraine have continued and, although both sides have shown some signs of compromise, there have been no major breakthroughs,” Kotak Securities said in a note.
Gold exchange-traded funds (ETFs) witnessed a net outflow of Rs 248 crore in February, making it the second consecutive month of withdrawals as investors preferred equities over other segments on record SIP flows. Net outflows from the gold ETFs were at Rs 452 crore in the month of January. Prior to that, the asset class had seen a net investment of Rs 313 crore, according to the data of Association of Mutual Funds in India (Amfi).
Also Read: Good News: LIC India give good Opportunity to policyholders
Despite the outflows, the category witnessed an increase in net assets under management (AUM) of gold ETFs to Rs 18,727 crore at the end of February from Rs 17,839 crore in January-end. Also, the segment saw a surge in the number of folios by 3.09 lakh to 37.74 lakh during the period under review.
Comments are closed.