Price rise dulls activity in top Asian hubs
(Reuters) -Physical gold demand in key Asian hubs slipped this week as a rise in prices weighed on buying interest, while higher rates encouraged some to cash in on their holdings.
"Buyers aren't keen on picking up gold at these prices. In fact, some investors are offloading the coins and bars they grabbed when prices were lower," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
In India, domestic gold prices were trading around 102,100 rupees ($1,165.45) per 10 grams on Friday after hitting a record high of 102,191 rupees earlier.
Indian dealers this week quoted a discount of $9 to a premium of $2 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, compared to the last week's discount of up to $7.
Jewellery exporters are not keen to buy gold, as demand from their biggest market, the United States, is likely to fall due to tariffs imposed by President Donald Trump, said a Mumbai-based bullion dealer with a private bank.
In top consumer China, bullion changed hands at par to a $2 premium an ounce over the global benchmark spot price. Last week, dealers quoted gold between a discount of $4.2 and a premium of $12 per ounce.
"Last week, we saw some buying interest, but this week prices have been on the rise, so there's less buying interest. Overall, we are seeing people buying gold on dips," said Peter Fung, head of dealing at Wing Fung Precious Metals.
In Hong Kong, gold was sold at par to a premium of $1.60, while in Singapore, gold traded between at-par prices and a $2.50 premium.
"As gold prices have gone up, we see more selling from the retail and wholesale sides. We see more of them borrowing gold at this point in time because prices are edging on the higher side," said Brian Lan, managing director at Singapore-based GoldSilver Central.
In Japan, bullion was sold at a $0.25 premium over spot prices, according to a Tokyo-based trader.
($1 = 87.6060 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
11 minutes ago
- CNN
US and China reportedly agree to critical extension, preventing tariff surge on the world's two largest economies
Tariffs Asia ChinaFacebookTweetLink Follow The United States and China agreed to pause tariff hikes on each other's goods for an additional 90 days, according to multiple reports citing White House officials. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world's two largest economies. The news, first reported by CNBC, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It's unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs. It also comes after Trump imposed a slew of 'reciprocal' tariffs on trading partners around the world, which have raised the United States' effective tariff rate to levels not seen since the Great Depression. Higher tariffs on Chinese goods, America's second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay — or already are paying — because of increased import taxes Trump enacted. This is a developing story. It will be updated.
Skift
13 minutes ago
- Skift
8 Out of Top 10 Countries for U.S. Tourism Showed Declines in July
Tourism to the U.S. from overseas has declined for 5 of the past 6 months. Higher visa fees and other restrictions could make it worse. Overseas visits to the U.S. dropped 3.1% in July, extending a slide that began earlier this year, according to preliminary government data released Monday. The National Travel and Tourism Office reported that arrivals from Western Europe fell 4% year-over-year, driven by a steep 14.7% drop from Germany. Other major declines came from China (down 13.8%), Switzerland (down 12.7%), the Netherlands (down 7.2%), and India (down 5.5%). Visits have fallen in five of the past six months, with April the one exception, when there was a 1% gain. The data excludes arrivals from Canada and Mexico, the two largest inbound markets for the U.S. In June, air travel by Canadians to the U.S. dropped 22% and car crossings dropped 33%, the sixth straight month of declines, according to Statistics Canada. Overall, eight of the top 10 overseas markets for U.S. tourism saw year-over-year declines in July. The only gains came from Japan and Italy. UK: – 0.4% India: -5.5% France: -0.2% Japan: + 9.1% Germany: – 14.7% Brazil: -1.7% South Korea: – 0.8% China: – 13.8% Italy: + 6.3% Colombia: – 0.3% The declines have coincided with increased global tensions related to rhetoric from the Trump administration and tough negotiations over tariffs. In addition, there were several isolated but highly publicized reports of tourists being detained at U.S. checkpoints and the U.S. has resurrected travel bans and other travel restrictions. The recently passed tax and spending law – 'One Big Beautiful Bill Act' – includes an 80% reduction in federal funding for Brand USA, which markets the U.S. abroad as a tourist destination.
CNN
14 minutes ago
- CNN
US and China reportedly agree to critical extension, preventing tariff surge on the world's two largest economies
Tariffs Asia ChinaFacebookTweetLink Follow The United States and China agreed to pause tariff hikes on each other's goods for an additional 90 days, according to multiple reports citing White House officials. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world's two largest economies. The news, first reported by CNBC, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It's unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs. It also comes after Trump imposed a slew of 'reciprocal' tariffs on trading partners around the world, which have raised the United States' effective tariff rate to levels not seen since the Great Depression. CNN reached out to White House officials for comment. Higher tariffs on Chinese goods, America's second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay — or already are paying — because of increased import taxes Trump enacted. This is a developing story. It will be updated.
