Physical demand for gold in India was subdued this week despite a correction in bullion prices, while consumers in most other Asian hubs also remained on the sidelines as they hoped for a clearer trend in global prices.
Indian gold futures fell to their lowest level since August 13 on Thursday, with premiums on official domestic prices – including levies of 10.75% on imports and 3% on sales – unchanged at $ 2 per ounce.
“Gold prices fluctuate a lot globally and there is no clear trend confusing Indian buyers,” said a Mumbai-based bullion trader with a private gold import bank. .
Following an initial decline earlier this week, benchmark global spot gold prices have stabilized in a narrow and volatile range at around $ 1,800 per ounce ($ 63.5 per gram).
Exhibition of the Gemstone and Jewelry Export Promotion Council
The Gem & Jewelery Export Promotion Council exhibition, where jewelers present their creations to buyers, will kick off in Bangalore next week.
“Jewelers are expecting the exhibition next week. They will make purchases based on the response they receive at the exhibition, ”said Ashok Jain, owner of Mumbai-based wholesaler Chenaji Narsinghji.
However, India’s gold imports in August nearly doubled from the previous year as jewelers stocked up for the holiday season, a government source said.
Also see: India’s gold imports in August nearly doubled thanks to price correction
China, the largest consumer, saw a slight increase in premiums to $ 3-4 an ounce on average relative to world prices, from levels of $ 1-5 last week, dealers said, although that on the whole the market is still muted.
But there have been “good buys” in China, said Bernard Sin, regional manager for Greater China at MKS, adding that in Singapore, premiums were between $ 1.20 and $ 1.40 an ounce at as businesses gradually open up.
Hong Kong markets were also relatively subdued, traders said, with premiums unchanged from last week at $ 0.50 – $ 1.80 an ounce, as gold traded flat by compared to world reference prices in Japan.
Japanese consumers were also largely “undecided” as they expected a clearer direction for prices linked to the range, a Tokyo-based trader said.