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Physical gold demand in India was subdued this week despite a correction in bullion prices, while consumers in most other Asian hubs also stayed on the sidelines as they hoped for a clearer trend in global prices.
On Thursday, India’s gold futures fell to their lowest level since August 13, with premiums over official domestic prices – inclusive of the 10.75 per cent import and 3 per cent sales levies – unchanged at $2 an ounce.
“Gold prices are fluctuating a lot globally and there is no clear trend, confusing Indian buyers,” said a Mumbai-based bullion dealer with a private gold importing bank.
After an initial decline earlier this week, global benchmark spot gold prices have settled into a narrow, choppy range at around $1,800 an ounce ($63.5 a gram).
Gem & Jewellery Export Promotion Council exhibition
The Gem & Jewellery Export Promotion Council’s exhibition,where jewellers display their designs to buyers, kicks off in Bangalore next week.
“Jewellers are waiting for next week’s exhibition. They will make purchases based on the response they get at the exhibition,” said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
However, India’s gold imports in August nearly doubled from a year earlier as jewellers stocked up for the festive season, a government source said.
Also see: India's August gold imports nearly double on price correction
Foreign markets
Top-consumer China saw a slight pick up in premiums to $3-$4 an ounce on average over global prices, from the $1-$5 levels last week, dealers said, although overall the market was still muted.
But there was some “good buying” in China, said Bernard Sin, Regional Director, Greater China at MKS, adding that in Singapore, premiums were in the $1.20-$1.40 an ounce range 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, while gold traded flat to global benchmark prices in Japan.
Japanese consumers were also largely “undecided” as they awaited a clearer direction in range-bound prices, a Tokyo-based trader said.
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