Jewellers are offering discounts on gold and gold ornaments at a time when prices of the precious metal have increased in the market. The demand for the yellow metal is likely to take a hit due to an ebbing wedding season and increasing gold prices. It is because of these two factors that more jewellers are offering discounts to prop up demand and corner market.

Gold dealers are offering as much as $9 per ounce on official prices this week, reported Reuters.

As on Friday market close, Gold Futures for August expiry slipped by Rs 285 or 0.56% on the Multi-Commodity Exchange (MCX) to settle at Rs 50,984 per 10 grams. Despite the weakness, market prices are up by Rs 1,000 from the nadir of Rs 49,700 touched in May.

Physical gold prices vary across cities in India due to hauling charges, the quality of metal, among other factors. Goods & Service Tax (GST) of 3% and a duty of 10.75% is charged across all cities on gold items in India.

The metal which acts as a hedge against uncertainty came under pressure in the international market on Friday from a stronger dollar and better-than-expected US jobs data raised concerns of aggressive monetary policy tightening. Spot gold fell 1% to $1,848.67 per ounce by 1759 GMT, after earlier falling to $1,846.4. U.S. gold futures settled down 1.1% at $1,850.20.

According to the US Department of Labour, jobs data was better than expected in the month of May and wages increased, indicating streght in jobs market. This led to concerns that US Federal Reserve might increase rates at a faster clip; higher interest rates are not good for gold as investors tend to move toward bonds or other debt securities because gold holdings do not bear interest