By Rajendra Jadhav and Anmol Choubey
(Reuters) – Physical gold demand in key Asian hubs remained subdued this week as price volatility kept buyers at bay, while jewellers in India resumed purchases ahead of a key festival season.
Gold prices in India were trading around 99,300 rupees ($1,135.77) per 10 grams on Friday after hitting a record high of 102,250 rupees earlier this month.
“With prices easing, jewellers are feeling more confident about festival demand and have slowly started buying again,” said a Mumbai-based bullion dealer with a private bank.
Indians will celebrate the Dussehra and Diwali festivals in October, when buying gold is considered auspicious.
This week, Indian dealers were quoting between a discount of $2 per ounce and a premium of $3 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, compared to last week’s discount of up to $6.
Retail buying is still subdued, currently at around 60% of normal levels, said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweller.
In top consumer China, bullion changed hands between premiums of $3 and $8 an ounce over the global benchmark spot price, which traded in a range of $3,311 to $3,358 this week, down 0.2% so far for the week.
“With gold in the doldrums, there is scope for exaggerated moves on news from Jackson Hole, which reflects the thin trading conditions currently gripping the market,” said Ross Norman, an independent analyst.
In Hong Kong, gold was sold at par to a premium of $1.70, while in Singapore, gold traded between at-par prices and a $2.50 premium.
“We’ve seen a bit of retail buying, but nothing really substantial… In the jewellery space, demand has been quiet because prices are high,” said Brian Lan, managing director at Singapore-based GoldSilver Central.
While there has been more interest in investment bars, it is nothing really well out of the ordinary, Lan added.
In Japan, bullion changed hands at par to a premium of $0.50 over spot prices.
($1 = 87.4300 Indian rupees)
(Reporting by Anmol Choubey in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Eileen Soreng)
