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Asia Gold-India is collapsing as prices rise; ask for dips in top hubs – Metals & Mining

* Premiums in China fall to $ 6-8 per ounce

* Stronger Yen raises Japanese premiums, demand for subdued trader

* Hong Kong, Singapore premiums changed little

* Indian gold market: tmsnrt.rs/2b1Tl6J

From Rajendra Jadhav and Harshith Aranya

MUMBAI / BENGALURU, May 17 (Reuters) – Gold was sold at a discounted price for the first time in 2-1 / 2 months this week, as higher prices deter jewelers and private buyers, while currency fluctuations and buyer's economic concerns meant caution in other Asian hubs .

Gold futures in India, & # 39; the world's second largest precious metal consumer after China, rose to 32,538 rupees per 10 grams earlier this week, a peak since March 4.

"Customers are struggling to adjust to the sudden price increase. Some are waiting for a correction," said Harshad Ajmera, the owner of JJ Gold House, a wholesaler in the East Indian city of Kolkata.

Dealers offered a discount of around $ 2 per gram compared to official domestic prices, compared to a premium of $ 2.5 last week.

The domestic price includes an import tax of 10% and 3% sales tax.

"The retail demand was good during Akshay Tritiya. Jewelers have to replenish the stock, but they don't because of the price increase," said a dealer in Mumbai with a precious metal import bank.

Indians celebrated the Akshaya Tritiya festival last week, when buying gold was considered a promising one.

In China, premiums fell to $ 6-8 from $ 8-12 last week, compared to mid-April when premiums reached a two-year high of around $ 20 compared to the benchmark.

Global benchmark spot gold held around $ 1,284 an ounce on Friday, after climbing to a month-long peak of $ 1,303.26 earlier this week.

However, trade volume has increased at the Shanghai Gold Exchange, said Samson Li, a precious metal analyst from Hong Kong at Refinitiv GFMS.

"Investment demand may come later, mainly because people are already speculating whether the yuan would fall further," he added.

The yuan fell to the weakest since December on Friday.

Meanwhile, buyers in Japan were closely monitoring currency fluctuations, with the Japanese yen becoming stronger this week, a trader in Tokyo said, adding that demand had not increased significantly due to the weak economic conditions in Japan and China.

The stronger yen pushed premiums to about $ 1 from 50 cents last week, the trader added.

The demand was silent in Hong Kong because people are keeping a close eye on trade negotiations between the US and China, said Ronald Leung, head dealer at Lee Cheong Gold Dealers in Hong Kong.

The premiums in the region had hardly changed at 60 cents- $ 1.30.

Demand was silent in Singapore too, as the Akshaya Tritiya festival has ended and most jewelers have purchased gold, said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

The premiums were unchanged at 60-80 cents.

The Singapore dollar has also become stronger against the US dollar, making gold more expensive in Singapore and adding Lan. (Reporting by Rajendra Jadhav in Mumbai, Harshith Aranya and Arijit Bose in Bengaluru; editing by Arpan Varghese and Elaine Hardcastle)

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