AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)
Markets

Asia Gold-Indian jewellers lift shutters; discounts prevail in top hubs

  • China discounts at $7-$12/oz vs last week's $20-$50.
  • Japanese prices between $0.30 discount to $0.50 premium.
Published June 11, 2021

Physical gold demand crept up this week in top hubs India and China though dealers were still forced to offer discounts, while businesses limped back to life in India as some COVID-19 restrictions were eased.

Some Indian states have begun easing restrictions as infection cases abate.

"Slowly, businesses are opening up in a few states. As new coronavirus cases are falling, expectations are most states will ease restrictions in the next few weeks," said Mukesh Kothari, director at Mumbai bullion dealer RiddiSiddhi Bullions.

Dealers offered discounts of up to $12 an ounce over official domestic prices, inclusive of 10.75% import and 3% sales levies. That was unchanged from last week, a level of discount not seen since mid-September 2020.

"Jewellers were sceptical. They don't know how quickly demand would recover. That's why they're not showing interest in making purchases at the higher level," said another Mumbai-based bullion dealer with a gold importing bank.

On Friday, local gold futures traded at around 49,200 rupees per 10 grams.

India's gold imports in May surged over nine-fold from 2020's low base to 12 tonnes.

Discounts in top consumer China narrowed to about $7-$12 per ounce against global benchmark spot gold rates, from last week's $20-$50, amid stricter COVID-19-related restrictions.

"We believe demand will continue, though supply will diminish, China will be trading back at premium levels," said Bernard Sin, regional director, Greater China at MKS.

Premiums of $0.50-$1 per ounce were charged in Hong Kong, while in Singapore, premiums remained at $1.20-$1.50 amid muted demand.

"We've seen less demand from retail and even the wholesale side," said Brian Lan, managing director at Singapore dealer GoldSilver Central, adding a semi-lockdown has led to reduced footfall in stores.

Dealers were hopeful of a rebound as restrictions are relaxed from next week.

Japanese dealers sold gold at a $0.30 discount to $0.50 premium. Higher prices muted activity.

Comments

Comments are closed.