Titan may face higher interest rates for leasing gold as bullion banks redirect supply to the U.S. due to high premiums on gold futures. This shift is causing a supply crunch and fluid interest rates. Titan’s growth outlook is uncertain amid fluctuating gold prices and potential U.S.-China trade tensions, despite strong third-quarter profits.  

Indian jeweller Titan will likely have to pay higher interest rates to lease gold from bullion banks, which have increased shipments to the U.S. in search of bigger profits, tightening supply in other regions, the company said on Wednesday.

Jewellers such as Titan, which owns the Tanishq and CaratLane brands, lease gold from bullion banks, which import the metal, to avoid inventory risks due to fluctuation in prices of the yellow metal.

Global bullion banks are flying gold into the U.S. from trading hubs catering to Asian consumers to capitalize on the unusually high premium that U.S. gold futures are enjoying over spot prices, Reuters reported this week.