Gold prices in India have shifted to a premium for the first time in three months, driven by a combination of tightening supply and rising demand. Dealers reported premiums as high as 6.4K, signaling a notable shift in market dynamics.
The demand for gold in India has been bolstered by the onset of the festive buying season, which typically sees a surge in purchases. This increased demand comes amid a period of lower gold prices, making the precious metal more attractive to buyers.
Despite potential government interventions that could limit gold imports, experts suggest that India's appetite for gold is unlikely to wane. The premium pricing indicates that supply constraints are exacerbating the demand-supply imbalance in the market.