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Premiums for getting physical delivery of gold have increased again, to a level prevailing three weeks earlier. Against Monday's $60-70 an ounce, gold was quoted here on Tuesday at $110 an ounce higher than its cost of import, which works out to Rs 2,000 per 10g.
The price of gold closed on Tuesday at Rs 335 or 1.1 per cent higher at Rs 31,180 per 10g at Zaveri Bazar. The reason for the rise in premiums is said to be demand for the coming marriage season and the fact that imports of gold are likely to remain low. In October, imports increased to 24 tonnes against the previous two months' average of 11 tonnes.
On Monday, however, the Reserve Bank said any duty-free import for export purposes (after processing or value addition) could happen only after getting an Advance Authorisation or Duty Free Import Authorisation, and the import should happen prior to export. The trade interpreted this as imports having been tightened again.
