Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Asia Gold-India jewellers eye festive boost as buyers ignore price dip

09/17/2021 | 08:56am EDT

* Chinese premiums rise to $5-$9 this week

* Singapore premiums at $1.2-$1.6/oz

* Current price very attractive to build stocks - Indian dealer

Sept 17 (Reuters) - A pullback in domestic prices failed to revive physical gold demand in India this week, with jewellers banking on the upcoming wedding and festive season, while top consumer China saw an uptick in buying.

"Sentiment is weak. Retail demand is lower than normal as many consumers are preserving cash," said a Mumbai-based bullion dealer with a private gold importing bank.

On Thursday, local gold futures fell to 45,812 rupees per 10 grams, a trough since Aug. 10.

Dealers in India were charging premiums of up to $3 an ounce over official domestic prices — inclusive of 10.75% import and 3% sales levies — versus last week's $2.

Jewellers could increase buying in coming days as prices have corrected and peak demand season is approaching, said another Mumbai-based bullion dealer, adding "the current price is very attractive for jewellers to build stocks."

With the start of wedding season as well as festivals like Dhanteras and Diwali, the December quarter usually accounts for about a third of India's gold sales.

In China, premiums rose to $5-$9 per ounce on average over global benchmark prices, which fell as low as $1,744 an ounce this week, from $3-$4 last week.

The top-consumer saw strong physical demand, with premiums as high as $7-$9, due to strength in the Chinese yuan and a rush to safe-haven on the back of collapsing property stocks, said Bernard Sin, Regional Director, Greater China at MKS.

"We saw extremely large gold importation into China this week," Sin added.

Premiums of $0.50-$1.20 were charged in Hong Kong, while $1.20-$1.60 premiums were quoted in Singapore.

"On the retail front, we see the trend of investors buying more as long as prices are below $1,800," said Vincent Tie, sales manager at dealer Silver Bullion.

In Japan, gold was sold at a premium of $0.50 an ounce.

(Reporting by Rajendra Jhadav in Mumbai, Nakul Iyer and Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel)

ę Reuters 2021
Latest news "Economy & Forex"
04:18aBank of spain governor de cos says supply chain problems, rising raw material prices affects negatively economic recovery pace
04:09aSudan tv says ruling council head burhan will deliver statement to the sudanese people shortly
04:09aSudan TV says ruling council head Burhan will deliver statement shortly
04:07aEskom says S.Africa needs extra 4,000-6,000 MW of power capacity
04:05aVolvo Cars scales back flotation size, sets price at low end of range
04:00aNippon Life to reduce foreign bonds without FX hedge on bullish view on yen
03:55aSudanese protesters cross barriers and enter street surrounding military headquarters - images on aljazeera mubasher
03:55aSudanese protesters approach military headquarters - TV images
03:54aThailand approves $660 million support measures for farmers
03:53aJAPAN MINISTRY OF FINANCE : Net income from japan post share sale totals 836.7 billion yen
Latest news "Economy & Forex"