Indian gold prices flip to discount for first time in 7 weeks

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Gold started trading at a discount to official prices in India on Friday for the first time in seven weeks, and buyers elsewhere in Asia held back purchases, waiting for rallying bullion prices to ease. 

 

Gold crept higher on Friday as investors opted for its relative safety given uncertainty about U.S. and European politics and the direction of stock markets. Gold, on track for a third week of gains, has risen about 7.5 percent in 2017.Gold was trading around 29,400 rupees per 10 grams on Friday, after falling to 26,862 rupees in December, the lowest level since Feb. 2, 2016. Gold demand in India will be muted this year after dropping to multi-year lows in 2016, as the government pushes to make the market more transparent and brings in a new tax, the World Gold Council (WGC) said.

 

 "We are seeing only those who are buying for investment purposes since Donald Trump came in January. (The) rest of them aren't buying and (are) waiting for prices to come down."

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