🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Asia Gold-Higher prices stall demand in India; activity dim elsewhere

Published 2021-03-19, 08:09 a/m
© Reuters.

* China premiums at $7-$9/oz versus $8-$10 last week

* Jewellers reducing purchases due to COVID-19 curb fears- Mumbai-based dealer

* Investors selling their bars this week- Tokyo-based retailer

By Rajendra Jadhav and Sumita Layek

March 19 (Reuters) - Physical gold demand was subdued in India this week as a rebound in domestic prices kept consumers away, while activity in other top hubs also remained lacklustre.

"Demand has started moderating due to rising prices. Retail buyers are taking a pause," said Mukesh Kothari, director at Mumbai gold dealer RiddiSiddhi Bullions.

On Friday, local gold futures MAUc1 were trading around 45,000 rupees per 10 grams after falling to 44,150 rupees earlier this month, the lowest level since April 7.

Dealers were charging a premium of up to $6 an ounce this week over official domestic prices, inclusive of 10.75% import and 3% sales levies, unchanged from last week.

"Jewellers have been reducing purchases. They fear authorities could put restrictions on shops and malls due to rising coronavirus cases," said a Mumbai-based dealer with a bullion importing bank.

India's coronavirus infections surged to an over three-month high on Friday, led by a record daily increase in the western state of Maharashtra, prompting authorities to place fresh curbs to restrain the spread of the disease. China, gold was sold at premiums of $7-$9 an ounce over benchmark spot gold prices, down from last week's $8-$10, while in Hong Kong, premiums of $0.50-$1.70 were being charged versus $0.80-$2.50 last week. GOL/

"It is quiet. There are no visitors as the borders are not open so Hong Kong is losing a lot of Chinese customers," said Ronald Leung, chief dealer for Lee Cheong Gold Dealers in Hong Kong. Singapore, premiums dipped to $1.5-$2 an ounce from $1.60-$2.50 charged a week earlier.

In Japan, premiums of $0.50-$0.75 an ounce were being charged versus last week's $0.75.

"We're seeing more investors selling their bars to us this week," a trader at Tokyo-based retailer Tokuriki Honten said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.