Buyers rush to jewelry stores as gold prices fall to lowest level in a year | Economy News
New Delhi: Retail consumers in India continued to buy physical gold this week as prices retreated to near-year lows, while lower rates also injected new activity into gold. other hubs, particularly in Singapore.
Dealers were charging up to $5 an ounce above official domestic prices, including 12.5% levies on imports and 3% on sales, compared to a premium of $4 last week.
“Demand has improved significantly in recent days. Retail buyers are shopping especially for weddings,” said Mangesh Devi, a jeweler based in Satara in the western state of Maharashtra.
On Friday, March 5, local gold futures fell to Rs. 44,217 per 10 grams, a low since April 7.
Jewelers also made healthy purchases in the first half of the week, but now some of them have paused expecting further price cuts, a Mumbai-based retailer said with a bullion import bank. “Jewelers don’t want to be stuck with expensive inventory,” the retailer said.
In Singapore, premiums of $1.60 to $2 an ounce were charged, with strong demand resulting from low local prices. “We have seen an increase in demand, particularly from retail customers, for gold and silver as prices have come down slightly,” said Brian Lan, managing director of dealer GoldSilver Central, adding that wholesalers also cover their short term. posts.
Chinese customers were charged premiums of around $6-7 an ounce over benchmark spot gold prices, unchanged from last week, as demand was stable, but not high, the dealers said. In Hong Kong, dealers sold bullion at any price between a $3 discount and a $2 premium to the benchmark. Japanese dealers charged a premium of $0.50.
A sharp drop in domestic rates triggered relatively strong investment demand, said a trader at Tokyo-based retailer Tokuriki Honten. “Individual investors see the current price level as a good buying opportunity,” the trader added.