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Asia Gold-Dealers lower rates for physical purchases as high costs bite

An uptick in gold rates today prevented physical purchases in top customers, prompting dealerships to use lower premiums in China and much deeper discounts after a. key goldbuying festival in India.

In India, the world's second-largest gold consumer and a. major importer, domestic costs were around 73,000. rupees per 10 grams on Friday, near a record high of 73,958. rupees hit last month.

Need has softened after a brief pickup during recently's. Akshaya Tritiya festival, said Harshad Ajmera, the owner of. JJ Gold House, a wholesaler in the eastern city of Kolkata.

Indian dealers offered a discount << XAU-IN-PREM > of up to $10. an ounce over official domestic rates, inclusive of 15% import. and 3% sales levies, versus last week's discount of $7.

Jewellers have paused their purchasing given that retail demand. plunged after Akshaya Tritiya, and there are less weddings this. year, said a Mumbai-based bullion dealer.

India's April gold imports more than doubled to $3.11. billion, compared with $1.53 billion in March.

In leading consumer China, premiums << XAU-CN-PREM > were seen. in between $16-$ 30 per ounce over benchmark spot rates,. versus $26-$ 35 last week.

In spite of the ongoing financial obstacles, it's likely that. gold imports will stay controlled in the future, stated. Bernard Sin, local director, Greater China, at MKS PAMP.

Gold import quotas are scarce, if not completely absent, Sin. said, including that these aspects could restrict the upward potential. of the Shanghai gold premium.

High prices moistened activity in other centers also, with. bullion being sold between at par to $2.50 premiums. << XAU-SG-PREM > in Singapore, and at $0.50 to $2.50 premiums. << XAU-HK-PREM > in Hong Kong.

In Japan, dealers sold gold << XAU-TK-PREM > at a $0.25-$ 1. premium, larger than last week's variety.

Traders said need has actually come down a bit because of. the weaker yen, and profit-taking was bigger than recently.