Indian gold prices rose to Rs 55,558 per 10 grams earlier this month, not far from the high of ₹56,191 in August 2020. A dealer says that the flow of old jewellery, coins is normal in India.
Indian gold rose to ₹55,558 per 10 grams earlier this month, not far from the all-time high of ₹56,191 in August 2020.
A rise in domestic prices dampened retail appetite for physical gold in India this week, while a resurgence in COVID-19 cases prompted dealers in China and Hong Kong to offer discounts.
Indian gold rose to Rs 55,558 per 10 grams earlier this month, not far from the all-time high of Rs 56,191 in August 2020.
A Mumbai-based dealer of a private gold importing bank said, “The prices are very volatile. Consumers expect the prices to not stay higher.”
Dealers offered discounts of up to $45 an ounce on official domestic prices — which includes 10.75% import and 3% sales duties — versus last week’s $77 discount, a nearly six-year peak.
A New Delhi-based bullion dealer said the flow of old jewelery and coins has come down amid volatility in prices.
In China, discounts rose to between $4 and $6 an ounce compared to global benchmark spot rates, up from $2 to $4 the previous week.
In Hong Kong, gold was sold for anywhere between a $4 discount to benchmark rates, compared to a $3 discount last week.
Independent analyst Ross Norman said regional physical demand is weak given the COVID-19 situation in China and heavy discounts in India, and there is no question that physical demand has weakened in Europe and Asia.
But demand from institutional buyers remains strong, Mr Norman said. Meanwhile, gold was trading at a premium of around $1-1.80 an ounce in Singapore. Brian Lan, managing director of dealer GoldSilver Central, said, “While businesses and retail investors have started buying gold as prices bounce back from recent highs, “we have seen a lot of selling” as prices are still relatively low. It’s having a tough time because our retail side isn’t doing the same. So maybe they’re selling inventory to take profit,” Mr. Lan said.