Premiums for physical gold in India reached their highest level in almost four months this week, driven by a recovery in demand following the fall in prices, while China, the largest consumer, n experienced only limited interest in retail purchasing.
Domestic prices in India fell to Rs 73,300 per 10 grams earlier this week, after hitting a record high of Rs 79,775 last month.
“Buyers were waiting for prices to come down, but once they came down, retailers started buying,” said a Hyderabad-based jeweler.
This week, Indian traders charged a premium of up to $16 per ounce over official domestic prices – including the 6% import tax and 3% sales tax – for a premium by 3 dollars last week. Higher premiums indicate increased retail demand.
Jewelers have replenished their stocks after good sales during the Dhanteras and Diwali festivals, a Mumbai jeweler said.
International spot gold prices are set for their worst week in more than three years, after prices fell to their lowest level in two months on Thursday. [GOL/]
Although gold is trading well below its all-time high, China has yet to notice a shift in favor of precious metals, said Hugo Pascal, precious metals trader at InProved.
Traders in China, the world’s largest consumer of the metal, offered discounts of $10 to $13 compared to last week’s discounts of $15 to $17.
On the retail side, physical demand in China remains weak due to a strong dollar and limited interest in the physical gold market, said Peter Fung, head of trading at Hong Kong-based Wing Fung Precious Metals. Kong.
Hong Kong traders charged premiums of up to $1.20 on gold, compared to last week when the discount was $0.20 and the premium was $1.
In Japan, gold was sold at par at a premium of $0.5, a slight change from last week, while traders in Singapore sold it at a premium of 1.10 $ to $2.20.
According to Brian Lan, managing director of GoldSilver Central, many customers in Singapore wait until prices reach their lowest level before placing pending orders, as they expect further drops.
