Jewellers in India faced shortage of the yellow metal ahead of the
key wedding season, keeping premiums supported at higher levels, despite
meeting part of the demand through left over consignment stocks from
banks.
On May 13, the Reserve Bank of India restricted gold imports by
banks on a consignment basis, except to meet genuine demand from
jewellery exporters.
“We have some left over consignment stocks … So for the time
being we are catering to jewellers,” said an official with a foreign
bank importing bullion.
The actively traded gold contract for June delivery on the Multi
Commodity Exchange (MCX) was 1.28 percent lower at 25,505 rupees per 10
grams at 2.34 p.m., after hitting a low of 25,373 rupees, a level last
seen on April 18.
“People have already purchased for Akshaya Tritiya and
Gurupushyamrut (an auspicious occasion), and we don’t have ready
material. Even if it is ready stock, we need to pay additional premium
of 700-1,500 rupees (per 10 grams),” said Haresh Soni, chairman of All
India Gems & Jewellery Trade Federation, a trade body.
India, the world’s biggest buyer of the metal, celebrated the
second biggest gold buying festival after Dhanteras last week, and
weddings will continue till June.
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