Asia gold: India demand muted despite price correction; buying picks up in China, Singapore
Demand for physical gold in India remained subdued this week despite a correction in prices, as buyers held out for a bigger drop, while demand improved in China and Singapore.
This week, Indian dealers were offering a discount of up to $18 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's discount of up to $27.
'Retail buyers are still on the sidelines despite the correction in prices. This is traditionally a lean demand season and buyers are waiting for a bigger drop in prices,' said a Kolkata-based jeweller.
Domestic gold prices were trading around 96,100 rupees per 10 grams on Friday after hitting an all-time high of 101,078 rupees earlier this month.
Jewellers weren't buying much new gold from banks because retail buyers were trading in their old jewellery for new ones, which met a good part of the demand, said a Mumbai-based bullion dealer with a private bank.
Spot gold was trading around $3,294.19 as of 0425 GMT, down from levels near $3,450 last week.
Gold heads for second weekly loss, investors eye US inflation data
Dealers in top gold consumer China charged premiums of $12-$14 an ounce over the global benchmark spot price, higher than last week's $10 premium.
'People are still interested in buying some gold as a safe haven,' Peter Fung, head of dealing at Wing Fung Precious Metals said, adding that a dip below $3,300 could attract more interest as investors seem ready to buy on any weakness.
In Hong Kong, gold was sold at par to a $2.00 premium, while in Singapore, gold traded between at-par price and a $2.20 premium.
'We've seen a bit more retail buying… wholesalers are also short-covering because the prices came down quite a bit from last week,' said Brian Lan, managing director at GoldSilver Central.
In Japan, bullion was sold flat to a $0.5 premium.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
36 minutes ago
- Business Recorder
Emirates extends suspension of flights to and from Tehran until July 5
CAIRO: Emirates extended its cancellation of flights to and from Iran's capital Tehran until July 5 due to the 'regional situation', it said in a statement on Saturday. Airlines suspend flights after Israel strikes The Dubai-based airline said it will recommence operations to Baghdad on July 1 and Basra on July 2.
Business Recorder
12 hours ago
- Business Recorder
Surge in conflicts fuels extreme poverty: World Bank
WASHINGTON: Conflicts and related fatalities have more than tripled since the early 2000s, fuelling extreme poverty, the World Bank said Friday. Economies in fragile and conflict-affected regions have become 'the epicentre of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict,' the bank added in a new study. This year, 421 million shaped by the frequency and intensity of conflict,' the bank added in a new study. This year, 421 million people get by on less than $3 a day in places hit by conflict or instability — a situation of extreme poverty — and the number is poised to hit 435 million by 2030. Global attention has been focused on conflicts in Ukraine and the Middle East for the past three years, said World Bank Group chief economist Indermit Gill. But 'half of the countries facing conflict or instability today have been in such conditions for 15 years or more,' he added. Currently, 39 economies are classified as facing such conditions, and 21 of them are in active conflict, the Washington-based development lender said. The list includes Ukraine, Somalia, South Sudan and the West Bank and Gaza. It also includes Iraq although not Iran. The report flagged that moves to prevent conflict can bring high returns, with timely interventions being 'far more cost-effective than responding after violence erupts.' It also said that some of these economies have advantages that could be used to reignite growth, noting that places like Zimbabwe, Mozambique and the Democratic Republic of Congo are rich in minerals key to clean tech like electric vehicles and solar panels.
Business Recorder
20 hours ago
- Business Recorder
India markets regulator says probing ‘pump and dump' instances
India's markets regulator said on Friday that it found 'incriminating evidence' as a part of its ongoing investigation into 'pump and dump' practices involving certain stocks. The Securities and Exchange Board of India (SEBI) said it conducted search and seizure operations in multiple locations this month, but did not name any specific sites or companies involved. 'Pump and dump' refers to a stock manipulation practice in which market participants artificially inflate share prices through continuous purchases, luring other investors to buy in, and then sell their shares at higher prices to realise profits. Financials, metals lift Indian benchmarks to weekly gains as geopolitical, trade fears ease Local business news website Moneycontrol reported last week, citing sources, that SEBI carried out raids in Ahmedabad, Mumbai, and the northern hub of Gurugram to crack down on a pump and dump scheme worth more than 3 billion rupees ($35.1 million). The raids reportedly involved 15 to 20 shell firms. At least two listed agro-tech companies and their promoters are allegedly at the helm of the network, according to the Moneycontrol report.
