The gold premiums in Mumbai dropped significantly following India’s meteorological department forecasting weak monsoon season ahead. The yellow metal continued to trade more or less at parity to $0.50 premium with international prices. Also, gold for immediate delivery was available at discounts of $3-$4 per ounce on recycled gold bars.
The gold premiums in Mumbai remained flat with no major upticks during the week. The yellow metal continued to trade more or less on par with international prices or at a premium of $1. The premiums held firm when matched with the previous week.
Given the persistence of the support level at $1,180, the market may see the current level in gold as a bargain opportunity to enter low risk buy trades, especially if the dollar pulls back after its big rally.