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Physical premium for gold fell below $10 an ounce on Thursday at Zaveri Bazaar here. International prices went up $10 from Wednesday’s. In the spot market, prices went up by only Rs 50 per 10g and closed at Rs 27,100 per 10g.
The premium, once quoted at $15-180 an ounce or $50-60 per 10 g, was on Thursday at $8 an ounce.
Market players say this is a nine-month low. Such premiums were seen in September when investors sold the gold they had bought in June (then Rs 25,000 per 10g). In September, the price crossed Rs 30,000 per 10g. The low premium now is because there is no retail demand. Most are expecting prices to fall. There are hopes the import duty on gold will be cut from 10 per cent to seven-eight per cent. After the relaxation in import norms, premiums had fallen to $20 an ounce.
