Gold demand soft in top Asian hubs as prices soar

A woman tries gold jewellery from a jewellery showroom, on the occasion of dhanteras at Karol Bagh in New Delhi. File   | Photo Credit: Shiv Kumar Pushpakar

Physical gold demand in major Asian hubs softened this week with prices near multi-month peaks, although Indian dealers looked to the upcoming wedding season for renewed interest in bullion.

“Jewellers have taken a pause. They are waiting for prices to correct,” said a Mumbai-based bullion dealer with a private bank. Local gold futures closed at ₹49,059 per 10 grams on Thursday, after rising to ₹49,610 earlier this week - the highest since June 3.

Dealers were this week offering a discount of up to $2.5 an ounce over official domestic prices — inclusive of the 10.75% import and 3% sales levies — up from the prior week’s discount of $2.

Buyers are now postponing their purchases for weddings, said a bullion dealer.

In China, the world’s top consumer of gold and Japan, retail demand continued to struggle due to higher prices. Premiums of $1-$4 an ounce in China were charged over benchmark spot prices compared with last week’s $2-$5 an ounce premium.

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Printable version | Jan 18, 2022 7:02:51 AM |

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