Gold dealers sell at a discount for sixth week amid price fall

Dealers in India offered discounts for the sixth week on gold even as price cuts eased as rates fell sharply this week, according to a report. Mint cited a Reuters report saying that the dealers offered discounts of up to $5 an ounce this week, down from last week’s $23, over official domestic prices. The report said that a drop in prices saw a little interest return in the precious metal.

Mint cited a gold dealer as saying that the demand for the precious metal in India, which is its second biggest consumer in the world, may pick up a little ahead of the festive season and the recent price drop could encourage jewellers to build up inventory.

Gold and silver prices came down this week to register their biggest weekly fall in the past many months. Gold futures settled at Rs 49,666 per 10 gram and silver at Rs 59,018 per kg on the Multi Commodity Exchange (MCX). Gold prices were down by Rs 2,000 per 10 gram in India and those of silver tumbled by Rs 9,000 per kg on a weekly basis.

Gold registered a big fall this week in the international market as well, which experts said was because of a resurgent US dollar as concern over the outlook for global economic growth strengthened its appeal as a safe-haven.

(With agency inputs)