ANL 28.52 Increased By ▲ 0.14 (0.49%)
ASC 16.71 Increased By ▲ 0.02 (0.12%)
ASL 23.75 Decreased By ▼ -0.11 (-0.46%)
AVN 94.24 Decreased By ▼ -0.65 (-0.69%)
BOP 9.47 Decreased By ▼ -0.02 (-0.21%)
BYCO 9.57 Decreased By ▼ -0.05 (-0.52%)
DGKC 110.51 Increased By ▲ 0.02 (0.02%)
EPCL 47.50 Decreased By ▼ -0.02 (-0.04%)
FCCL 21.15 Decreased By ▼ -0.15 (-0.7%)
FFBL 27.96 Increased By ▲ 0.08 (0.29%)
FFL 19.27 Decreased By ▼ -0.08 (-0.41%)
HASCOL 14.31 Decreased By ▼ -0.01 (-0.07%)
HUBC 86.00 Decreased By ▼ -0.14 (-0.16%)
HUMNL 7.26 Decreased By ▼ -0.03 (-0.41%)
JSCL 31.45 Decreased By ▼ -0.15 (-0.47%)
KAPCO 40.76 Decreased By ▼ -0.07 (-0.17%)
KEL 4.10 Decreased By ▼ -0.01 (-0.24%)
LOTCHEM 16.19 Increased By ▲ 0.03 (0.19%)
MLCF 43.05 Decreased By ▼ -0.16 (-0.37%)
PAEL 39.85 Increased By ▲ 0.01 (0.03%)
PIBTL 12.90 Decreased By ▼ -0.09 (-0.69%)
POWER 11.40 Decreased By ▼ -0.01 (-0.09%)
PPL 93.29 Decreased By ▼ -0.39 (-0.42%)
PRL 23.80 Decreased By ▼ -0.08 (-0.34%)
PTC 9.30 Decreased By ▼ -0.02 (-0.21%)
SILK 1.21 Decreased By ▼ -0.01 (-0.82%)
SNGP 44.34 Decreased By ▼ -0.14 (-0.31%)
TRG 108.48 Decreased By ▼ -1.23 (-1.12%)
UNITY 33.15 Increased By ▲ 0.04 (0.12%)
WTL 1.12 No Change ▼ 0.00 (0%)
BR100 4,856 Decreased By ▼ -9.94 (-0.2%)
BR30 24,724 Decreased By ▼ -96.85 (-0.39%)
KSE100 45,868 Decreased By ▼ -116.42 (-0.25%)
KSE30 19,061 Decreased By ▼ -87.18 (-0.46%)

MUMBAI: Physical gold demand in India was lacklustre this week even as shops reopened, while Bangladesh announced plans to withdraw import taxes to clamp down on bullion smuggling.

"Showrooms have opened, but still jewellers are waiting for customers. As public transport is not available in cities like Mumbai, consumers are not stepping out," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Indian dealers offered discounts of up to $20 an ounce over official domestic prices, down from last week's $32, which was the highest since early April. The domestic price includes a 12.5% import tax and 3% sales tax.

Some potential buyers have been delaying purchases due to volatile prices, said a Mumbai-based dealer with a bullion importing bank. Indian gold prices have risen nearly 18% so far in 2020.

Neighboring Bangladesh, meanwhile, is set to scrap taxes on gold imports to curb smuggling, with the revised guidelines likely to be implemented from July 1.

"Despite the Gold Policy 2018, gold has not been imported legally into the country due to the existing high tax incidence," Finance Minister A.H.M. Mustafa Kamal said on Thursday while unveiling the country's 2020/21 budget.

"I propose to withdraw 15% VAT on the import of gold bar to discourage illegal import and encourage the import on legal routes through authorised dealers."

In top consumer China, discounts eased to $5-$10 an ounce versus benchmark prices from last week's $11-$14 discounts.

Investment demand dominates the market rather than retail, said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.

Premiums in Hong Kong were steady at $0.50-$1 an ounce.

In Singapore, premiums inched up to $1.25-$1.50 an ounce from $1-$1.50 last week.

Demand is higher than before the onset of the COVID-19 crisis, said Vincent Tie, sales manager at Silver Bullion.

Copyright Reuters, 2020