The price of gold continued its upward trend, reaching above Rs66,000 per tola before dipping back to over Rs65,000 in commodity futures markets. With high prices, demand has decreased, leading jewellers to purchase gold from bullion traders at a discounted rate. For consumers, the price in Nagpur is approximately Rs65,700 per tola before adding a 3% Goods and Services Tax (GST). Futures market rates, similar to stock exchanges for commodities, serve as a benchmark for comparing physical demand rates. Nowadays, bulk traders also provide price quotes through apps. According to trade sources, on Friday, rates in physical market apps were Rs300 to 500 lower than commodity futures prices.
In trading terminology, gold is currently being traded at a discount. When physical gold prices are lower compared to commodity exchanges, it indicates lower demand relative to the actual supply of the metal. Traders mentioned that there are instances of a premium, particularly when prices decline and buying activity increases. On Friday, commodity exchanges operated from 5pm to 11pm instead of the usual morning hours due to the holiday for Mahashivratri. Gold rates started the day on a high note.
