Customers welcome lower local prices

Customers welcome lower local prices

Local gold prices in India fell to 51,436 rupees per 10 grams on Friday, the lowest since August 3.

Gold demand in India improved this week as a drop in domestic prices to a more than two-week low allowed traders to cut discounts, while volumes were bleak in other Asian hubs .

Local gold prices in India fell to 51,436 rupees per 10 grams on Friday, the lowest since August 3.

“Retail demand was good this week. Jewelers were also shopping due to the price correction,” said Harshad Ajmera, owner of JJ Gold House, a wholesaler in Kolkata.

Dealers this week offered a rebate of up to $4 an ounce off official domestic prices, including the 15% import levy and 3% sales levy, down from the rebate of $14 last week.

Investment demand for gold was weak as many traders shifted to silver, said a Mumbai-based dealer with a private bank.

“The continued decline in gold and silver prices, while the US dollar remained strong, was a positive driver of global demand for physical and retail bullion this week,” said Nicky Shiels, chief executive. metals strategy at MKS PAMP.

Chinese premiums were almost unchanged at $5-8 an ounce against international spot prices.

As long as the short-term $1,750-$1,800 range holds…physical demand should remain decent, Shiels said.

Hong Kong saw gold sold between flat and $2 premiums, unchanged from last week, with one trader describing the activity as “sluggish”.

Singapore also saw relatively quiet demand, where premiums of $1.50 to $2.30 were charged, consistent with the previous week.

Dealers in Japan sold the metal between par and $0.50 above the benchmark.

“Japanese retail investors are likely to buy dips, but trading volume is lower than usual,” said a Tokyo-based trader.

“We are in the middle of the summer vacation season and the real action will be seen from next week.”

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