By Rajendra Jadhav and Brijesh Patel
(Reuters) -Gold was sold at a discount this week in India for the first time in seven weeks, as demand slowed after key festivals, while premiums ticked higher in other top Asian hubs following a pullback in global rates that lifted activity.
Indian dealers offered a discount of up to $12 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week’s premium of up to $25.
“Price volatility has slowed demand, and some investors are cashing in by selling coins they bought for a profit,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Domestic gold prices fell to around 121,500 rupees per 10 grams after hitting a record high of 132,294 rupees earlier this month. Meanwhile, global spot gold prices were on track for their second weekly fall. [GOL/]
The Dhanteras and Diwali festivals over the last eight weeks were when buying gold was considered auspicious and among the busiest gold-buying days in the country.
Jewellers have seen a sharp drop in footfalls after the festival rush, prompting them to slow down on building stocks for the wedding season (in November), said a Mumbai-based dealer with a private bank.
In top consumer China, bullion traded at par to a $4 premium an ounce over the global benchmark spot price. Last week, bullion changed hands anywhere between a discount of $20 and a premium of $8 an ounce.
In Singapore, gold traded between at par and a $3 premium. Gold in Hong Kong was sold at par to a premium of $1.6.
“We’ve seen investors coming to buy, especially when prices came down this week,” said Brian Lan, managing director at Singapore-based GoldSilver Central.
In Japan, gold was sold at a $1 premium over spot prices.
(Reporting by Brijesh Patel in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Harikrishnan Nair)
