Latest News

ASIA GOLD-Gold Demand in Key Asian Hubs Improves amid Price Correction

The physical gold demand on key Asian markets has improved this week, as the price drop has sparked a renewed interest in buying. However, volatility is keeping some buyers cautious.

On Wednesday, spot gold fell to its lowest level for a whole month and was on track to suffer a third consecutive loss.

This week footfall was higher than the previous week. "Buyers were asking about the price trends and made small purchases," said an Indian jeweller based in Pune.

The domestic gold price was around 97.700 rupees for 10 grams of gold on Friday, after reaching 100.555 rupees the previous week.

Indian dealers offer discounts The difference between official domestic prices and the price of gold has decreased to $7 per ounce, including 6% import duties and 3% sales taxes, as opposed to up to $15.00 last week.

A Mumbai-based bullion seller with a private banking firm said that jewellers wanted to purchase items to replenish their inventory following a correction of overseas prices. However, a significant fall in the rupee partially offset the effect of the price drop.

The World Gold Council announced on Thursday that India's gold demand in 2025 will fall to its lowest level in five years, due to record high prices.

Dealers in China quoted gold at a range of prices, ranging from a discount of $4,2 to a premium up to $12 per ounce over international rates.

Hugo Pascal is a precious metals dealer at InProved. He said, "China appears slightly to buy the dip in Gold... Trading volume for the physical contract AU9999 has been increasing (11 tons were traded yesterday), reflecting renewed interest in the Metal."

Hong Kong gold Singapore sold the same product at a $1.50 price premium. Prices ranged from parity to a $1.40 surcharge.

In Japan, bullion Was sold at par with a premium $0.60.

There was a lot of demand for buying if the price even dropped slightly. A Japan-based trader stated that gold was being bought as an asset amid low interest rates, regardless of the Japan-U.S. deal. (Reporting from Anmol Choubey, Bengaluru, and Rajendra Jadhav, Mumbai)

(source: Reuters)