By Rajendra Jadhav and Anmol Choubey
(Reuters) -Physical gold demand in key Asian markets improved slightly this week as a pullback in prices sparked buying interest, though volatility kept some buyers cautious.
Spot gold hit its lowest level in a month on Wednesday and was headed for third consecutive weekly loss. [GOL/]
“This week, footfall was better than last week. Buyers were inquiring about price trends and making small purchases,” said a Pune-based jeweller.
Domestic gold prices were trading around 97,700 rupees per 10 grams on Friday after rising to 100,555 rupees last week.
Discounts offered by Indian dealers narrowed to as much as $7 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, compared to up to $15 last week.
Jewellers were keen to make purchases to replenish inventory after a correction in overseas prices, but a significant drop in the rupee offset the impact of the price fall to an extent, said a Mumbai-based bullion dealer with a private bank.
India’s gold consumption in 2025 is set to fall to a five-year low, as record-high prices are denting jewellery purchases, the World Gold Council said on Thursday.
In China, dealers quoted gold in a wide range, between a discount of $4.2 and a premium of $12 per ounce above international rates.
“China appears to slightly buy the dip in gold… trading volume for the physical proxy contract AU9999 on the Shanghai Gold Exchange has been on the rise (11 tons traded yesterday), reflecting a renewed interest in the metal,” said Hugo Pascal, a precious metals trader at InProved.
In Hong Kong gold was sold at par to a $1.50 premium, while Singapore prices ranged from par to a $1.40 premium.
In Japan, bullion was sold at par to a premium of $0.60.
“There was lots of demand to buy if the price dropped even slightly. Regardless of the Japan-U.S. trade deal, gold is being purchased as an asset class amid low interest rates,” a Japan-based trader said.
(Reporting by Anmol Choubey in Bengaluru and Rajendra Jadhav in Mumbai)
