Indian gold premiums steady due to scarce stocks

Written by Reuters | Mumbai | Updated: Nov 22 2013, 21:57pm hrs
Gold premiums in India steadied on Friday on scarcity of stocks for domestic consumption despite muted demand, amid steady prices in the domestic market.

* To ease its trade deficit, India has linked imports for domestic consumption with exports. It has hiked the import duty on the yellow metal to a record 10 percent.

* "Premiums are still on the higher side at about $120 (an ounce). Still there is scarcity of gold. This problem will continue for another 5-6 months till the elections," said Haresh Soni, chairman, All India Gems and Jewellery Federation.

* Premiums were at $80 an ounce last week.

* The wedding season, when demand for gold typically rises, is under way in India and will continue until January.

* In the domestic market, gold for December delivery on the Multi Commodity Exchange (MCX) was 0.1 percent lower at 30,244 rupees per 10 grams at 0945 GMT. Silver for December delivery was 0.27 percent lower at 45,014 rupees per kg.