India gold prices hit record high on global cues, weak rupee

Gold prices in India jumped over 2 percent on Monday to record levels, following gains in overseas markets and as the rupee fell to a five-month low, dampening demand further in the world’s second-biggest consumer of the precious metal.

Local gold futures hit an all-time high of 36,990 rupees ($524.70) per 10 gram, taking their gains to more than 17 percent in 2019.

“Demand is negligible due to higher prices. Even after offering hefty discount, consumers are not ready to buy,” said Mukesh Kothari, director at dealer RiddiSiddhi Bullions in Mumbai.

Dealers were offering a discount of up to $36 an ounce over official domestic prices, the highest since August 2016. The domestic price includes a 12.5 percent import tax and 3 percent sales tax.