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Gold demand remains muted; discounts in India narrow

Gold Investments

Demand for gold in India remained lacklustre this week as higher prices hampered consumer purchases, but discounts narrowed due to a correction in overseas rates. The safe-haven bullion has fallen over 1 percent this week despite a mixed bag of U.S. economic data ahead of next week’s U.S. Federal Reserve policy meeting.

In India, the world’s second-biggest gold consumer, discounts on official domestic prices came down this week to $20 an ounce, from last week’s $32.

“Some customers are replacing old jewellery for new, but fresh demand is still weak,” said Kumar Jain, vice-president, Mumbai Jewellers Association.

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Article from Reuters.