Indian gold traders hope for a festive shake in a quiet market, Retail News, ET Retail

Physical demand for gold in major Asian hubs was largely reduced this week as a rebound in domestic prices kept buyers at bay, while Indian dealers put their hopes on the next festival season to attract more clients.

Local gold futures were trading at around 47,100 rupees per 10 grams on Friday, recovering from a four-month low of 45,662 rupees reached last month.

As a result, retail demand has been quite weak across the country in recent days as prices have risen, said a Mumbai-based bullion trader with a private bank.

Dealers have charged premiums of up to $ 2 an ounce over official domestic prices – including 10.75% import taxes and 3% sales taxes – unchanged from last week.

“The festival season is approaching. Jewelers could start buying if prices remain stable over the next few days,” said another Mumbai-based bullion dealer.

In China, premiums have narrowed slightly to $ 1-5 an ounce against global benchmark spot prices, compared to premiums of $ 3-6 last week.

“Demand in China remains subdued as customers wait for prices to drop,” said Peter Fung, head of transactions at Wing Fung Precious Metals.

In Hong Kong, premiums of $ 0.80 to $ 1.80 have been charged as the increase in COVID-19 cases and the resulting lockdowns have hurt demand for jewelry.

In Singapore, premiums ranged from $ 1 to $ 1.50 an ounce, and according to Brian Lan, managing director of GoldSilver Central dealership, customers took advantage of the higher prices to sell more gold.

In Japan, gold premiums have remained in a range of $ 0.25 to $ 0.50, Tokyo-based traders said.

Meanwhile, the Bangladesh Jewelers Association raised local rates on all types of gold, citing gains in international markets, with the highest quality gold priced at 73,483 taka ($ 864.71) per Bhori, or 11, 664 grams.

There was also a shortage of supply in local markets as imports were hampered by fiscal complexities and the stoppage of international flights.

About Jennifer Amaro

Jennifer Amaro

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