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Gold demand in India and other Asian hubs weakens as prices recover – ThePrint – ReutersFeed

Posted on by L. Dreeye
Gold demand in India and other Asian hubs weakens as prices recover – ThePrint – ReutersFeed

Rajendra Jadhav and Rahul Paswan
(Reuters) – India’s physical gold premiums fell on weaker demand this week as rising local prices prompted jewelers and retail buyers to stay on the sidelines while demand for bullion in top consumer countries China and other major Asian hubs also remained low.

In India, domestic prices rose to Rs 77,220 per 10 gram on Friday after falling to Rs 73,300 last week.

“Jewelers were active last week after a significant price correction. However, they have reduced their purchases this week due to rising prices,” said Ashok Jain, owner of Mumbai-based gold wholesaler Chenaji Narsinghji.

This week, Indian dealers were charging a premium of up to $3 an ounce over the official domestic price, including 6% import and 3% sales levies, down from last week’s premium of $16.

“The sudden rise in global prices and the fall of the rupee to a record low have pushed up local prices. This has confused buyers and made them wait for a correction,” said a Mumbai-based dealer at a private bullion importing bank.

International spot gold prices headed for their best week in a year on Friday, helped by demand for safe-haven assets. (GOAL/)

While gold futures are set for weekly gains amid heightened tensions over the Russia-Ukraine war, trading activity in China remains weak, said Hugo Pascal, precious metals trader at InProved.

“Premiums continue to fluctuate between positive and negative territory without showing a clear directional trend.”

Dealers in China, the world’s biggest consumer of the metal, were charging a premium of up to $10 an ounce this week, with a discount of $6 an ounce, Pascal said.

In Japan, bars were selling at a premium of $0.50, unchanged from last week, while traders in Singapore were selling them at a premium of $1.20 to $2.20.

“A lot of people have decided to take a backseat as gold appears to be in a bullish state at the moment,” said Brian Lan, managing director of GoldSilver Central.

(Reporting by Rajendra Jadhav in Mumbai and Rahul Paswan in Bengaluru; Editing by Eileen Soreng)

Disclaimer: This report is automatically generated by Reuters News Service. ThePrint is not responsible for its content.