ASIA-GOLD-DEMAND:Festive buying props up demand in India; China muted in post-holiday trade
By Rajendra Jadhav and Brijesh Patel
-Physical gold demand in India held firm this week despite a record-breaking price rally, as jewellers and investors snapped up bullion ahead of key festivals later this month, while buying in China was subdued in post-holiday trade due to higher rates.
In Hong Kong, residents rushed to sell everything from gold bars to rings to cash in on the record price rally.
Spot gold prices rose above $4,000 per ounce for the first time on Wednesday, as broader geopolitical and economic uncertainty, and U.S. rate-cut expectations boosted bullion demand. [GOL/]
Indians will celebrate Dhanteras and Diwali this month, festivals during which buying gold is considered auspicious and which are the busiest bullion-buying days in the country.
Indian dealers were quoting a premium of up to $15 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week’s premium of $9.
“Investment demand is really strong right now. Expecting prices to rise further, investors didn’t mind paying extra even over record high prices,” said a Mumbai-based bullion dealer with a private bank.
Domestic gold prices were trading around 121,000 rupees per 10 grams on Friday after hitting a record high of 123,677 rupees earlier in the week.
Retail jewellery demand is still slow, but jewellers are hoping it picks up next week with Diwali around the corner, said a New Delhi-based dealer.
Demand in top consumer China was lacklustre after a long holiday, with discounts of about $48-$60 an ounce being offered to lure buyers.
“People are investing in gold bars and coins as safe havens but jewellery demand has been low. People are looking to buy, but they are waiting for prices to come down,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
In Hong Kong, gold was sold anywhere between a discount of $0.5 to a premium of $1, while in Singapore, gold traded between a discount of $0.5 to a premium of $1.30.
In Japan, bullion was sold at par to a premium of $1 per ounce over spot prices.
This article was generated from an automated news agency feed without modifications to text.
