Dealers Prepare For Spurt In Buying Amid Wedding Season As Physical Gold Demand Picks Up In Asia

Local gold futures fell to 47,253 rupees earlier this week, their lowest level in two weeks.

This week, demand for physical gold has recovered in key Asian centers, helped by falling prices. Indian traders are poised with the potential to make purchases as the wedding season advances.

A Mumbai-based private bank that deals with bars said prices had been reviewed earlier this week and said: “Jewelry is buying at low prices due to strong retail demand for weddings.” determined.

Local gold futures fell to 47,253 rupees earlier this week, their lowest level in two weeks. Dealers last week offered up to an ounce of the official domestic price, including 10.75% imports and 3% sales tax, at a $2 discount.

Gold has traditionally been an integral part of wedding ceremonies in India, the world’s second largest consumer of ingots after China.

In China and Japan there is a slight increase in prices due to lower prices. Chinese customers are billed at a premium of $4 to $5 per ounce on top of the reference spot price of $1 to $4 per ounce last week.

The country’s monthly net gold imports through Hong Kong rose 56% in October, the highest since June 2018.

Peter Fung, Head of Transactions at Wing Fung Precious Metals, said Chinese demand will remain strong through Christmas as global interest rates fall below $1,800 an ounce, prompting buying decisions. On the phone.

The spot reference price hit a low of $1,777.80 in a matter of weeks on November 24, but fears of a new variant of the coronavirus on Friday triggered a rebound.

“In Hong Kong too, demand is recovering somewhat. Interest in jewelry is growing,” added Huang.

In Hong Kong, a premium of US$1 per ounce is collected. Meanwhile, Singapore’s gold market has been particularly slow this week after soft asset markets and stock declines, said David Mitchell, CEO of Precious Metals Indigo.