Mining.com reported on Friday that gold in India has swung to a premium as lower prices lift jewellery demand. Dealers charge a premium when local demand is strong and a discount when it is weak, so the shift is a useful sign of how buyers are responding to the price drop.
The report added that gold imports usually rise ahead of the festival season, but inflows have been lower than usual this year.
What the local price looks like
At spot gold of about $4,166 an ounce and an exchange rate of roughly 95.1 rupees per dollar, pure gold works out to about ₹12,700 per gram, or about ₹127,000 for 10 grams. Those are conversions of the international price; Indian retail prices also include import duty, taxes and jewellers’ charges.
In dollar terms gold is about 21% below its record close of January. A weaker rupee means the price in rupees has fallen less than the dollar price, which is why demand can respond more slowly in India than the headline move suggests.
Where to follow it
We publish the live gold price in rupees, per gram, per 10 grams and per tola, and a table by karat, on our India page. The calculator on the site converts weight, karat and currency at the live price.
This note reports and explains market conditions and does not recommend buying or selling.