By Anmol Choubey and Rajendra Jadhav
(Reuters) -Demand for physical gold remained sluggish this week across major Asian markets as price volatility weighed on sentiment, with premiums in China holding firm and discounts in India narrowing.
Dealers in top consumer China charged premiums of $10-$25 an ounce over the global benchmark spot price, compared with premiums of $4.2-$33 last week.
Spot gold fell to its lowest level in over a week on Wednesday, dipping below the $3,300 mark, before recovering to trade at $3,335 as of 0520 GMT on Friday. [GOL/]
U.S. President Donald Trump has broadened his trade war in recent days, announcing new levies on several countries, set to take effect on August 1.
This uncertainty has failed to trigger a renewed interest in gold buying in China this week, said Hugo Pascal, a precious metals trader at InProved.
China’s central bank issued new anti-money laundering and counter-terrorism financing regulations targeting precious metals and gemstone dealers, state news agency Xinhua reported.
“(This regulation) will kill some potential demand onshore China,” a mainland China-based precious metal trader said, adding gold demand may rise only when prices approach $3,000-$3,100.
Meanwhile, Indian dealers’ discounts narrowed to up to $8 an ounce, inclusive of 6% import and 3% sales levies, from last week’s $14.
Discounts are gradually narrowing due to limited supplies, as imports were low in May and June and scrap availability is also restricted, said a Mumbai-based bullion dealer with a private bank.
Domestic gold prices traded around 97,300 rupees ($1,133.57) per 10 grams on Friday after hitting an all-time peak of 101,078 rupees last month.
Gold demand is typically subdued in India during the monsoon season that spans June to September.
In Hong Kong, gold was sold at par to a premium of $1.50, while in Singapore gold traded between at-par prices and a $2.20 premium.
In Japan, bullion changed hands at par to a premium of $0.50.
($1 = 85.8350 Indian rupees)
(Reporting by Anmol Choubey in Bengaluru; Editing by Janane Venkatraman)
