India gold premiums steady as price fluctuations stabilise demand
Physical gold premiums were steady in India, as a rise in demand from this week's price correction was later countered by higher rates, while demand in other major Asian hubs and top consumer China remained subdued.
Bullion prices in India rose to 76,504 rupees per 10 grams on Friday, up from 74,852 rupees earlier this week.
"Demand was strong at the beginning of the week due to lower prices, but weakened towards the end as prices increased," said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweller.
Indian dealers this week charged a premium of up to $3 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, unchanged from last week.
The wedding season has begun in India, and demand has been gradually improving, said a Mumbai-based dealer at a private bullion importing bank.
Dealers in China offered discounts between $19 and $21 an ounce..
"No haste to buy at this high level ... and after Donald Trump becomes the U.S. president we can see a clear picture for gold," said Peter Fung, head of dealing at Wing Fung Precious Metals, Hong Kong.
International spot gold prices recouped some losses from earlier in the week, driven by concerns over the Russia-Ukraine conflict and U.S. President-elect Donald Trump's fresh tariff plans. [GOL/]
"China has issued import quotas to manage the flow of gold into the country. Additionally, the potential depreciation of the RMB due to trade tensions could further stimulate domestic gold demand," said Bernard Sin, regional director of Greater China at MKS PAMP.
Traders in Singapore sold gold between a $0.50 discount to a $2.20 premium, while in Hong Kong, gold was sold at $1.40-$2.50 premiums..
For the next few days, the market will monitor gold's direction and "we do have some wholesale selling" as we approach year-end, said Brian Lan, managing director at GoldSilver Central.
In Japan, traders quoted a $3 discount to a $1 premium.
Source: https://sg.finance.yahoo.com/