Page 31 - Bollion World Volume 4 Issue 8 August 2024

Bullion World | Volume 4 | Issue 8 | August 2024

July 2024 Gold Premiums Report:

Asia and India Market Analysis

In July 2024, KIS gold kilobar premiums
in Asia averaged US$0.53/oz for
Loco Singapore, US$0.71/oz for Loco
Hong Kong and US$0.66/oz for Loco
Bangkok.* Premiums across Asia
plunged as gold prices hit a record high
of $2,483/oz on 17 July. Singapore saw
the steepest drop in premiums, falling by
-US$0.37/oz (-4%), followed by Thailand
at -US$0.19/oz (-22.6%) and Hong
Kong at -US$0.10/oz (-11.9%).

The stellar performance in gold prices
was driven by central bank purchases,
inflation, geopolitical concerns and the
likelihood of a US Fed rate cut by year- Source: Kallanish Index Services (KIS)
end. However, high prices dampened oz against international prices for the first time since
physical gold demand. China, one June 2023.
of Asia’s largest consumers of gold
saw demand weaken, with Shanghai China’s National Bureau of Statistics reported a 3.7%
premiums averaging US$11.66/oz in year-on-year (YoY) decline in retail sales of gold, silver,
July 2024, reflecting a month-on-month and jewellery in June 2024, following an 11% YoY decline
(MoM) decrease of US$18.60/oz. in May. Additionally, major Hong Kong jeweller Chow Tai
Towards the end of July, Shanghai gold Fook reported a 20% YoY decline in sales for the first
even moved to a discount of -US$11.66/
quarter of the financial year.

India's gold premiums, which typically
trade at a discount to international
prices, finally moved to a premium
following the government’s recent
decision to cut import duties on gold
from 15% to 6%, igniting a surge in
demand. As of 31 July 2024, India's gold
stood at a discount of INR 174.50/10g
over international gold prices.

* KIS gold price premiums reflect the
mid-point of the average bid and ask
premiums over spot reported by market
participants for each location.

For full price histories visit the
Kallanish Index Services
website: www.kallindex.com

Source: Kallanish Index Services (KIS)

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