x
Breaking News
0

Asia Gold-India wedding demand lacklustre as buyers await price dip

CommoditiesNov 10, 2017 18:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Asia Gold-India wedding demand lacklustre as buyers await price dip

* Premiums in India ease to $2/oz range

* Spot gold on track for first weekly gain in four

* China premiums in $5-$7; unchanged in Hong Kong, Singapore

By Rajendra Jadhav and Vijaykumar Vedala

MUMBAI/BENGALURU, Nov 10 (Reuters) - Demand for physical gold in Asia remained tepid this week as high prices kept buyers on the sidelines despite the start of the wedding season in India.

Gold is considered an essential part of weddings in India, the world's second-biggest consumer of the metal after China, and it is a popular gift for special occasions.

"Wedding season has started, but demand is poor compared to last year," said Ketan Shroff, managing director of Mumbai-based bullion dealer Penta Gold.

"Retail buyers are waiting for a correction. Jewellers need to replenish inventory but, they want to do it at lower levels."

Dealers in India were charging a premium of up to $2 an ounce over official domestic prices this week, down from $3 premium last week.

Local gold rates MAUc1 jumped to a three-week high of 29,687 rupees per 10 grams on Thursday.

India's gold consumption is likely to drop to its lowest in eight years in 2017, hit by government moves to make bullion trading more transparent and by faltering demand in some rural areas, the World Gold Council (WGC) said. officials said earlier this week that India's gold imports in the last quarter of 2017 could drop by a fourth from a year ago as investors seek better returns from riskier assets such as equities. gold benchmark XAU= prices were on track for its first weekly gain in about a month, having hit a three-week high of $1,288.34 an ounce on Thursday. GOL/

"Expectations earlier were that prices will come down, which has not happened. So, overall demand (in Asia) has been pretty weak," said a Singapore-based trader.

In China, gold was being sold at a premium of $5-$7 an ounce over benchmark rates, compared with a $5-$9 level in the previous week.

"With prices going higher, there was not much interest for gold purchases. A fall below $1,270 could lead to some buying," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Premiums in Hong Kong, and Singapore remained unchanged from last week in the 60 cents-$1.20 and 70-90 cents levels respectively, traders said.

"In Singapore, we continue to see strong physical demand for gold bars and gold coins, with a steady flow of customers," said Ronan Manly, precious metals analyst at Singapore-based dealer BullionStar.

Meanwhile, there was a slight uptick in activity in Japan but gold continued to be sold flat versus the benchmark, a Tokyo-based trader said.

Asia Gold-India wedding demand lacklustre as buyers await price dip
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email