Gold Price Today, 2 May 2021: Gold being sold at discount in India as COVID-19 pandemic stalls demand

Dealers were offering a discount of up to $2 an ounce this week over official domestic prices, inclusive of 10.75% import and 3% sales levies, from last week`s premium of $2. On Friday, gold prices ended 0.13% higher at Rs 46,785 per 10 gram. Silver prices stood at Rs 68,423 per kg.

For the very first time, gold in India was sold at a discounted rate amid a spike in COVID-19 cases in the country. The dealers were giving discounts of up to $2 an ounce this week over official domestic prices, reported Reuters.

"Almost every state government has put some kind of COVID-19 restrictions... jewellery stores are either closed or witnessing negligible footfalls," said a Mumbai-based dealer told Reuters.

Dealers were offering a discount of up to $2 an ounce this week over official domestic prices, inclusive of 10.75% import and 3% sales levies, from last week`s premium of $2.

"Jewellers have nearly stopped buying. They don`t know when retail demand will pick-up," said a bullion dealer based at Bangalore in the southern state of Karnataka.

Gold consumption is expected to falter in the June quarter due to the lockdowns, the World Gold Council said on Thursday.’

In top consumer China, premiums of $8-$10 were charged over benchmark spot gold prices, unchanged from last week.

On Friday, gold prices ended 0.13% higher at Rs 46,785 per 10 gram. Silver prices stood at Rs 68,423 per kg.