Gold demand soft in top Asian hubs as prices soar
Physical gold demand in major Asian hubs softened this week with prices near multi-month peaks, although Indian dealers looked to the upcoming wedding season for renewed interest in bullion.
“Jewellers have taken a pause. They are waiting for prices to correct,” said a Mumbai-based bullion dealer with a private bank. Local gold futures closed at ₹49,059 per 10 grams on Thursday, after rising to ₹49,610 earlier this week – the highest since June 3.
Dealers were this week offering a discount of up to $2.5 an ounce over official domestic prices — inclusive of the 10.75% import and 3% sales levies — up from the prior week’s discount of $2.
Buyers are now postponing their purchases for weddings, said a bullion dealer.
In China, the world’s top consumer of gold and Japan, retail demand continued to struggle due to higher prices. Premiums of $1-$4 an ounce in China were charged over benchmark spot prices compared with last week’s $2-$5 an ounce premium.