Gold premiums steady at record high

MUMBAI (Reuters) - Gold premiums in India, the world's biggest buyer of the metal, stayed at a record high of $120 an ounce as supplies fell short of demand in the peak festival period.

To curb imports of a non-essential import item like gold and limit a record trade deficit, India tied domestic consumption to exports under the new 80/20 rule.

"Demand has picked up since last week, but there is only limited stock available in the market for festivals," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.

"After Dhanteras sales, the problem will arise when jewellers will replenish the stock," said Bamalwa.

India celebrates Dhanteras on November 1, a festival during which buying gold is considered auspicious.

At 1528 IST, the actively traded gold for December delivery on the Multi Commodity Exchange (MCX) was 0.44 percent higher at 30,305 rupees per 10 grams.

The most-active silver for December delivery was 0.43 percent higher at 49,976 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)