A seller shows gold necklaces to a customer in a jewelry showroom in Kolkata
Bengaluru / Mumbai:
Physical gold traders in India continued to stock up this week ahead of an expected surge in festival sales, while Golden Week in China’s top-consuming China did little to revive the market. demand for ingots.
Gold is considered an integral part of Indian festivals such as Dussehra at the end of October, and Diwali and Dhanteras in November.
Demand from dealers is slowly improving as they expect retail buying to pick up during festival season, said Mukesh Kothari, manager of Mumbai gold dealer RiddiSiddhi Bullions.
Dealers charged a premium of $ 1 an ounce on official domestic prices, including 12.5% on imports and 3% in sales taxes, down from the premium of $ 2 last week.
Local gold futures were trading around 50,750 rupees per 10 grams on Friday.
Limited supply due to the sharp drop in imports in September also allowed dealers to charge a premium, said a Mumbai-based dealer with a bullion importing bank.
Discounts in China have eased to $ 30- $ 35 an ounce, their lowest since July, against global benchmark spot gold rates, as a week of holiday led to retail buying even if demand was still moderate.
“They have enough gold to circulate and that is why there is no rush at the moment,” said Bernard Sin, regional manager for Greater China at MKS, adding that demand could increase at the approaching chinese new year.
Activity in Hong Kong was also subdued, with gold sold for between a discount of $ 0.50 and a premium of $ 1 to global rates.
Rising costs for currencies and refineries to get gold in Hong Kong have caused premiums to persist, said Keanan Brackenridge, product manager at LPM Group Ltd.
In Singapore, premiums were little changed between $ 0.80 and $ 1.30 per ounce.
“Some customers are buying down, but more are selling because the prices have gone over $ 1,900,” said Brian Lan, general manager of GoldSilver Central dealership.
(This story was not edited by GalacticGaming staff and is auto-generated from a syndicated feed.)
