Gold premiums in India steadied on Friday on scarcity of stocks or domestic consumption despite muted demand, amid steady prices in the domestic market.
To ease its trade deficit, the country has linked imports for domestic consumption with exports.
According to RBI norms, gold importers have to export at least 20 per cent of the yellow metal they import. Gold imports for domestic consumption are now tied to exports under the new 80/20 rule, as an embattled government tries to curb a record trade deficit.
The government has also hiked the import duty on the yellow metal to a record 10 per cent.
"Premiums are still on the higher side at about $120 (an ounce). Still there is scarcity of gold. This problem will continue for another 5-6 months till the elections," All India Gems and Jewellery Federation chairman Haresh Soni said.
Premiums were at $80 an ounce last week.
The wedding season, when demand for gold typically rises, is under way in India and will continue until January.
In the domestic market, gold for December delivery on the Multi Commodity Exchange (MCX) was 0.1 per cent lower at Rs 30,244 per 10 grams, as on 0945 GMT.
Silver for December delivery was 0.27 per cent lower at Rs 45,014 per kg.
Copyright @ Thomson Reuters 2013
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
