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Home >Markets >Commodities >Gold in India sold at a discount even if prices fall ₹5,000 from highs In futures market, gold prices in India traded at <span class='webrupee'>₹</span>50,690 per 10 gram In futures market, gold prices in India traded at ₹50,690 per 10 gram Gold in India sold at a discount even if prices fall ₹5,000 from highs 1 min read . 09:37 AM IST Edited By Surajit Dasgupta Gold prices in India are down about ₹5,500 per 10 gram in a month The fall in prices has failed to spur a rebound in retail demand

Even though gold prices in India have fallen about 10% from their last month's highs, physical retail demand remained less than usual, forcing dealers to offer discounts. On Friday, gold prices in India fell for the third day in a row, settling at ₹50,690 per 10 gram. From August 7th highs of ₹56,200, gold is down about ₹5,500 per 10 gram or about 10%.

Dealers offered discounts of up to $40 an ounce over official domestic prices this week, Reuters reported, easing from last week's $43, a five-month peak.

Gold rates in India include 12.5% import duty and 3% GST.

Retail demand for physical gold picked up only slightly in India this week on a dip in domestic prices as coronavirus crisis sapped consumer sentiment.

Analysts say that gold prices are likely to remain supported at lower levels amid hopes of more fiscal stimulus measures and US-China trade tensions. Despite the recent price correction, gold prices in India are up about 30% this year, helped by easy monetary policy of central banks, and safe-haven demand and the depreciation of the rupee.

US Federal Reserve Chairman Jerome Powell on Friday said that while US August unemployment data for August was positive, the economy’s recovery from the coronavirus pandemic has a long road ahead and interest rates will remain low for a long time.

Powell's comments came after latest data showed the U.S. labor market extended its rebound for a fourth month in August, with the unemployment rate falling by almost 2 percentage points, to 8.4%. The much better-than-expected improvement in the jobless rate spanned demographic groups, while the payroll gains of 1.37 million were broad-based across industries. (

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