Gold premiums increase on festive demand, supply crunch

Singapore/Mumbai: Gold premiums in India, the world’s biggest buyer of the metal, jumped sharply this week as the festive season began, driving up demand, and supply remained tight on a lack of imports.

Premiums to London prices jumped to $30 to $40 an ounce from last week’s $5 to $7, the All-India Gems and Jewellery Trade Federation (GJF) said.

“There is no official gold available at present. People are not willing to sell their old jewellery either, at these prices,” said Sudheesh Nambiath, an analyst with metals consultancy Thomson Reuters GFMS.