Asia Gold – Falling Prices, Seasonal Demand Accelerates Purchases at Major Hubs, Retail News, ET Retail

Physical demand for gold in major Asian hubs increased this week, benefiting from continued price declines and a seasonal rise, as Indian jewelers waited for a further drop before sourcing.

Domestic markets in China, Singapore and Japan were inspired by lower benchmark global spot gold prices.

Chinese customers have been billed premiums of $ 6 to $ 9 an ounce over spot rates – about $ 1,770 an ounce on Friday – from $ 4 to $ 5 last week. Premiums of $ 0.50 to $ 1 an ounce were charged in Hong Kong.

Jewelry sales have been good in Hong Kong and could see good seasonal demand in China this month, said Peter Fung, head of transactions at Wing Fung Precious Metals.

In Singapore, current prices were driving manufacturers and jewelers to increase their wholesale purchases, with retail demand not as strong, said Brian Lan, general manager of reseller GoldSilver Central.

“In addition, some would buy small gold bars or coins as Christmas gifts.”

Singapore dealers have charged premiums of $ 1.30 to $ 1.60.

Silver also sees a lot of seasonal buys in Singapore, said David Mitchell, managing director of Indigo Precious Metals.

In Japan, gold was sold for between no premium and a premium of $ 0.50 an ounce.

Dealers in India have charged premiums of up to $ 2 an ounce over official domestic prices – including 10.75% import taxes and 3% sales taxes – over rebates of $ 1 an ounce. last week.

Jewelers are keen to make purchases for the wedding season, but postpone them in hopes that prices will drop further, said a Mumbai-based bullion dealer with a private bank.

Gold has traditionally been an integral part of weddings in India.

Local gold futures were around 47,600 rupees ($ 633.43) per 10 grams, after falling to a one-month low of 47,350 rupees earlier this week.

Consumers were expecting a clear price trend, said Ashok Jain, owner of Mumbai-based gold wholesaler Chenaji Narsinghji.

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