Gold demand drops in India as prices rebound
Consumers are waiting for correction, Indian jeweller says
Gold demand in India slowed this week as prices rose, while China's trading was quiet during its holiday-shortened period. Indian gold prices hovered around ₹150,900 ($1,561.87) per 10 grams on Friday, down from last week's ₹145,538, the lowest in nearly two months. Consumers are price-sensitive; they pause buying when prices increase, an Ahmedabad jeweller explained.
Dealers offered up to a $6 discount per ounce over domestic prices this week, compared to $14 last week due to reduced imports and levies. If investment demand rises during festivals like Dussehra and Diwali, the market may shift to a premium, a Mumbai dealer said. Indians celebrate Dussehra in October and Diwali in early November, considering gold purchases auspicious.
In China, gold traded at a $10 premium to the global benchmark price after reopening markets on Thursday. While market activity remained subdued, a premium indicated underlying physical buying interest, said MKS PAMP's regional director in China. International gold prices rebounded over 1 percent, after touching a two-month low earlier in the week.
Singapore saw gold trade between a 50-cent and $1.50 premium, while Hong Kong traded flat-to-$1 premium. In Japan, gold trades saw a 50-cent discount to premium. Profit sellers dominated the week, according to a Tokyo trader.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
