Physical gold demand in China moderated this week in the run-up to the Lunar New Year holiday, while in Japan and Singapore some consumers sold their bullion to cash in on high domestic prices.
Premiums in top consumer China eased to a range of $9-$20 an ounce over global benchmark spot prices after climbing as high as $30 last week.
“Closer to Chinese new year, people have left market and gone home, (there’s) only some small buying interest in jewellery,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
The Chinese holiday will be observed from Jan. 21 to 27.
In Singapore, premiums of $1.50-$3 were charged, while bullion changed hands in Hong Kong between at par to $3 an ounce.
Premiums have stayed in a healthy range with demand in a “widely bull trend”, said Bernard Sin, regional director, Greater China at MKS PAMP.
“Gold prices are high and we see more selling at this point of time because people are taking profit. Now it’s Chinese New Year period, so there will be an extended break especially in Asia, Hong Kong, China,” said Brian Lan, managing director at dealer GoldSilver Central.
Asia gold: China premiums rally; record-high India prices discourage buying
Japanese dealers sold bullion between premium and discount of 50 cents.
Dealers in India were offering a discount of up to $24 an ounce over official domestic prices — inclusive of 15% import and 3% sales levies — versus $35 last week.
“A section of retail consumers were making purchases for weddings,” said a Mumbai-based dealer with a private bullion importing bank.
Local gold prices hit an all-time high of 56,850 rupees per 10 grams on Friday.
Most of the jewellers were not making purchases as they are anticipating the government would cut import duty in the upcoming budget to curb smuggling, said a New-Delhi based bullion dealer.
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