Gold dealers in India this week offered the biggest discounts in nearly nine months as retail demand continued to remain muted due to coronavirus restrictions.
A discount of up to $12 an ounce was offered by gold dealers over official prices, versus $10 discounts last week, according to news agency Reuters.
Gold rates in India include 10.75% import duty and 3% GST. But with many states announcing unlocking process in a phased manner, retail demand is expected to pick up in India.
This is the highest level of discount since mid-September.
In global markets, the precious metal rebounded from a two-week low to $1,889 on Friday after US non-farm payrolls did not rise as much as expected. This helped ease concerns that the Federal Reserve will pull back stimulus.
Analysts expect gold to trade in the $1,855 and $1,920 range in the near term.