National News
Gold discounts in India widened this week to their highest point in nearly eight months
Gold discounts in India widened this week to their highest point in nearly eight months, as a surge in prices to a record high dampened demand, while customers in other key hubs also remained on the sidelines. Indian dealers this week offered a discount of up to $39 an ounce over official domestic prices, including 6 per cent import and 3 per cent sales levies, up from a discount of $10 to $21 last week.
Indian dealers this week offered a discount of up to $39 an ounce over official domestic prices, including 6% import and 3% sales levies, up from a discount of $10 to $21 last week.
“Jewellers are not keen on building high-cost inventory at the end of the financial year, as they are busy closing accounts,” said a Mumbai-based dealer with a bullion-importing bank. India’s financial year runs from April until March 31.
India’s gold imports are set to tumble 85% in February from year-ago levels, reaching their lowest levels in 20 years, as demand is dampened by record-high bullion prices.
In China, the world’s largest consumer, gold traded at a discount of $1 to an $18 premium over spot prices. Meanwhile, dealers in Hong Kong charged premiums ranging from par to $2 per ounce.In Japan, bullion was sold between a discount of $3 and a premium of $0.5, a trader said. In Singapore, gold traded between a $0.50 discount and a $3 premium
In the domestic market (MCX), gold and silver have hit unprecedented levels. Gold is currently hovering near the Rs. 1.53 lakh per 10-gram mark, while MCX silver has surged past Rs. 2.45 lakh per kg.
On the global stage, the momentum is slightly more restrained due to a powerhouse US Dollar, which has climbed to 99.3.
- Spot Gold: Trading marginally higher above $4,710 per ounce.
- Spot Silver: Initially rose to $76 per ounce before facing pressure and slipping toward the $75.6 range.
Crude Oil: Fueling Inflation Fears
As the conflict enters its ninth week, energy markets are on edge. Brent Crude has breached $106 per barrel, while US WTI rose above $95. These prices reflect the severe supply risk posed by the effective closure of the Strait of Hormuz, a critical chokepoint for global oil transit.
The failure of a second round of peace talks has dashed hopes for a swift resolution.
- Diplomatic Collapse: President Trump cancelled a high-profile meeting in Pakistan that was intended to bring US and Iranian envoys to the table.
- The Naval Standoff: Tehran refuses to negotiate while the US Navy blockade remains in place.
- The Nuclear Factor: While Iran expressed a willingness to reopen the Strait of Hormuz, they have shown no intent to abandon their nuclear program—a non-negotiable demand for Washington.
Investors are now bracing for a heavy week of policy decisions.
- The Fed Transition: The Federal Reserve is expected to hold rates steady this Wednesday. This meeting is particularly significant as it likely marks Jerome Powell’s final session as Chair, with Kevin Warsh anticipated to succeed him in May.
- Global Policy: Decisions from the ECB, Bank of England, and Bank of Japan are also due this week.
With inflation risks rising alongside oil prices, there is growing concern that central banks may be forced to keep interest rates higher for longer to combat the economic fallout of the Middle East crisis.
Market Sentiment: Fragile and uncertain. The “nerve-wracking” tension in the Middle East continues to act as the primary driver for both commodities and currency volatility.
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