By Anmol Choubey and Rajendra Jadhav
(Reuters) -Physical gold demand in China weakened further this week, with discounts hitting multi-year lows, while steady buying persisted in other major Asian hubs despite the high prices in anticipation of further gains.
Spot gold hit a record high of $3,790.82 on Tuesday and is up 1.4% so far this week. [GOL/]
In China, dealers widened discounts to $31-$71 per ounce against global benchmark prices, up from $21-$36 last week.
“Although discounts for gold are increasing, the trading volume on the Shanghai Futures Exchange remains significant. One possible reason behind this trend might be the allure of rapid profits on the CSI300, which is slightly undermining gold’s performance,” said Hugo Pascal, a precious metals trader at InProved.
China’s blue-chip CSI300 Index has climbed nearly 2% so far this week, hitting its highest point since February 2022.
In India, premiums held steady at up to $7 per ounce over official domestic prices, inclusive of import and sales levies, the highest since November 2024.
“Investors are snapping up coins and bars. They’re even paying premium over record prices, hoping the rally keeps going,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Domestic gold prices traded around 112,500 rupees per 10 grams on Friday after touching a record high of 114,179 rupees earlier this week.
A Mumbai-based dealer with a private bank noted that jewellers and bullion dealers are accelerating imports ahead of higher duties, expected after a revision to the fortnightly base import price.
Indians will celebrate the Dussehra and Diwali festivals in October, when buying gold is considered auspicious.
Elsewhere in Asia, premiums ranged from $1.50 to $2 in Hong Kong and $1.50 to $2.50 in Singapore.
This trend of gold buying is expected to continue, particularly if prices ease, which could drive increased buying,, said Brian Lan, managing director at Singapore-based GoldSilver Central.
Japan’s bullion traded at a premium of $1. “Lots of local investors keep buying small bars and I assume stable money should support physical gold in medium term,” a trader there said.
(Reporting by Anmol Choubey in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Harikrishnan Nair)
