Gold is at a discount, what is the reason?

 New Delhi, March 15- Gold prices are soaring at a rapid pace, with demand falling, discounts are being offered, 

 

Gold price

What is the main reason for gold prices to increase?

As gold prices in India have reached an all-time high, demand is falling. To compensate for this, gold importers are offering traders a discount of up to $39 per ounce, or Rs 3,400, the highest in eight months.

The risk of a global trade war has increased due to US President Trump's tax policy. As a result, investors are increasing their investment in gold globally, and the price of gold is touching a new high.

Due to the rise in prices, customers are reluctant to buy gold and are waiting for the price to fall. As a result, the gold trade has stagnated and the demand for jewelry has decreased significantly. Similarly, jewelers are also reluctant to buy gold.

India's gold bullion imports fell by 85 percent in February, the lowest in 20 years. Yesterday, the price of a sovereign increased by Rs 1,440 in a single day, exceeding Rs 66,000.

As a result, gold traders are offering higher discounts to increase sales.

Regarding this, gold and jewellery importers said

Only a few customers are coming to jewellery shops to buy gold. Due to the sharp rise in gold prices,
the demand for gold is decreasing.

Due to this. While last week, we gave a discount of Rs 870-1,827 for 1 ounce of gold, this week we are giving a discount of up to Rs 3,400.

One ounce of gold is equal to 28 grams. This includes 6 percent import sales tax. Since it is the last month of the current financial year, gold and jewellery traders are not interested in buying gold at a higher price as they are focused on closing their accounts. This is what they said.