Dealers in India are being forced to offer a discount over official prices this week as a jump in domestic rates dampened demand for the yellow metal. Gold futures in India settled above ₹48,000 per 10 gram on Friday after rising to near one-month high of ₹48,389 during the session. The price jump this month has disrupted the recovery in demand for the precious metal, the report said, citing a gold dealer. Gold had recently benefitted from the higher inflation as its safe haven appeal increased as hedge against inflation, say analysts. Although the general bias is on the upside one has to be cautious as any uptick in dollar might pressurize gold, say analysts.

Source: Mint July 17, 2021 23:48 UTC