India dealers hope for wedding rush as price dip sparks demand



By Rajendra Jadhav and Nakul Iyer


(Reuters) – Physical gold demand picked up in major Asian hubs this week helped by a retreat in prices, with dealers in India prepared for a likely spurt in buying as the wedding season gathers pace.





With a correction in prices during the first half of the week, “jewellers have been making purchases at lower levels as they are witnessing healthy retail demand for weddings,” said a Mumbai-based bullion dealer with a private bank.


Local gold futures fell to 47,253 rupees earlier this week, the lowest in a fortnight.


Dealers offered discounts of up to $1 an ounce over official domestic prices – inclusive of 10.75% import and 3% sales levies – versus last week’s $2 discounts.


Gold has traditionally been an integral part of weddings in India, the world’s second biggest bullion consumer after China.


Lower prices drove a slight pick up in China and Japan as well.


Chinese customers were charged premiums of $4-$5 an ounce over benchmark spot prices, versus last week’s $1-$4.


The country’s monthly net gold imports via Hong Kong jumped 56% in October to the highest since June 2018.


Peter Fung, head of dealing at Wing Fung Precious Metals, said Chinese demand should remain healthy as Christmas approaches, adding a dip in global rates below $1,800 an ounce prompted a pick in purchases.


Benchmark spot prices hit a multi-week low of $1,777.80 on Nov. 24, although concerns over a new coronavirus variant drove a rebound on Friday. [GOL/]


“Demand has recovered a bit in Hong Kong as well, we can see more interest in jewellery,” Fung added.


Premiums of $1 per ounce were charged in Hong Kong.


Meanwhile, the Singapore has been very sluggish this week tracking a soft assets markets and the sharp selloff in equities, said David Mitchell, managing director at Indigo Precious Metals.


 


(Reporting by Rajendra Jadhav in Mumbai, Nakul Iyer, Arundhati Sarkar and Asha Sistla in Bengaluru; Editing by Shailesh Kuber, Kirsten Donovan)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Source link