Gold Silver Reports (GSR) – Gold Prices Fall to 6 Week Low in India – Demand in India, the second biggest gold consumer after China, usually picks up towards the end of the year going into the wedding and festival season, when buying the metal is considered auspicious.
Physical gold demand in India was robust this week as consumers stepped up purchases during the traditional wedding season after domestic rates slipped to a near six-week trough, while gains in global prices weighed on bullion’s appeal in other Asian hubs.
Domestic gold prices were trading near their lowest since October 1, as an appreciation in the rupee made buying overseas cheaper.
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The current price level of gold was attracting both jewellers and retail consumers, said Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai.
Dealers in India were charging a premium of up to $2 an ounce over official domestic prices this week, down from $3 last week. The domestic price includes a 10% import tax.
Meanwhile, global benchmark spot gold prices were on track to post a second week of gains, having hit a two-week high of $1,230.07 an ounce on Wednesday.
“Jewellers are now replenishing inventory as sales during Diwali were decent,” said a Mumbai-based dealer with a bullion importing bank.
In China, premiums of $4-$6 an ounce were charged over the benchmark, versus $4-$7 last week.
Gold Demand in China is very quiet these days as prices are trading higher and people are hesitating to buy, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Premiums in Hong Kong also inched down slightly to $0.70-$1.50 an ounce from $0.80-$1.50 in the previous week.
Premiums in Japan were flat for the 10th consecutive week.
In Singapore, premiums eased to $0.50-$0.80 an ounce from $0.60-$0.90 previously.
