MUMBAI: Gold premiums in India steadied at $125 an ounce on London prices due to limited supplies in the wedding season.
To ease its trade deficit, India has made it more expensive to bring in gold, the biggest non-essential import item, by setting the import duty at a record high 10 percent.
It has also tied the quantity of imports to exports, making it necessary for importing agencies to fulfil export orders before sending any bullion for local consumption.
"Premiums are more or less the same as last week at $120-125 (an ounce) as demand is expected to pick up... supplies are still a big problem," said Bachhraj Bamalwa, director at All India Gems and Jewellery Trade Federation.
The wedding season, when demand for gold normally rises, is under way in India and will continue until January.
In the domestic market, gold for December delivery on the Multi Commodity Exchange (MCX) was 0.60 percent lower at 29,670 rupees per 10 grams at 1218 GMT.
Silver for December delivery was 1.18 percent lower at 44,020 rupees per kg.
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