Latest news with #ShanghaiGoldExchange
Business Recorder
3 days ago
- Business
- Business Recorder
Asia gold: India gold demand lags as prices rise, wedding buying cools
Physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of wedding season kept buyers at bay, while premiums slipped in top consumer China. This week, Indian dealers were offering a discount of up to $31 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's discount of up to $49. 'The wedding season is wrapping up and the monsoon has kicked in, so jewellers are expecting a seasonal dip in demand. That's why they're holding off on making new purchases,' said a Mumbai-based bullion dealer with a private bank. Domestic gold prices were trading around 94,900 rupees per 10 grams on Friday after hitting a one-month low of 90,890 rupees earlier this month. In China, bullion changed hands at par to a $15 premium an ounce over the global benchmark spot price, compared with premiums of $16-$30 last week. 'Shanghai Gold Exchange drawdowns have eased to the lows of this year while imports in the last few weeks have been exceptionally high, suggesting the Chinese domestic market may be overstocked just now,' said Ross Norman, an independent analyst. Gold falls as dollar strengthens ahead of key US inflation data China's total gold imports via Hong Kong nearly tripled month on month in April, hitting their highest level in more than a year, Hong Kong Census and Statistics Department data showed on Monday. 'Gold bullish bets remain predominant on the SHFE despite lower trading volume,' said Hugo Pascal, a precious metals trader at InProved. In Hong Kong, gold was sold at a premium of $0.30 to $1.30, while in Singapore gold traded between at-par prices and a $2.50 premium. In Japan, bullion was sold at par to a premium of $0.50.
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Business Standard
3 days ago
- Business
- Business Standard
India's gold demand lags as wedding season ends, high prices deter buyers
Physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of wedding season kept buyers at bay, while premiums slipped in top consumer China. This week, Indian dealers were offering a discount of up to $31 an ounce over official domestic prices, inclusive of 6 per cent import and 3 per cent sales levies, down from last week's discount of up to $49. "The wedding season is wrapping up and the monsoon has kicked in, so jewellers are expecting a seasonal dip in demand. That's why they're holding off on making new purchases," said a Mumbai-based bullion dealer with a private bank. Domestic gold prices were trading around Rs 94,900 per 10 grams on Friday after hitting a one-month low of 90,890 rupees earlier this month. In China, bullion changed hands at par to a $15 premium an ounce over the global benchmark spot price, compared with premiums of $16-$30 last week. "Shanghai Gold Exchange drawdowns have eased to the lows of this year while imports in the last few weeks have been exceptionally high, suggesting the Chinese domestic market may be overstocked just now," said Ross Norman, an independent analyst. China's total gold imports via Hong Kong nearly tripled month on month in April, hitting their highest level in more than a year, Hong Kong Census and Statistics Department data showed on Monday. "Gold bullish bets remain predominant on the SHFE despite lower trading volume," said Hugo Pascal, a precious metals trader at InProved. In Hong Kong, gold was sold at a premium of $0.30 to $1.30, while in Singapore gold traded between at-par prices and a $2.50 premium. In Japan, bullion was sold at par to a premium of $0.50.
Mint
3 days ago
- Business
- Mint
India gold demand lags as prices rise, wedding buying cools
By Rajendra Jadhav and Anmol Choubey (Reuters) - Physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of wedding season kept buyers at bay, while premiums slipped in top consumer China. This week, Indian dealers were offering a discount of up to $31 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's discount of up to $49. "The wedding season is wrapping up and the monsoon has kicked in, so jewellers are expecting a seasonal dip in demand. That's why they're holding off on making new purchases," said a Mumbai-based bullion dealer with a private bank. Domestic gold prices were trading around 94,900 rupees per 10 grams on Friday after hitting a one-month low of 90,890 rupees earlier this month. In China, bullion changed hands at par to a $15 premium an ounce over the global benchmark spot price, compared with premiums of $16-$30 last week. "Shanghai Gold Exchange drawdowns have eased to the lows of this year while imports in the last few weeks have been exceptionally high, suggesting the Chinese domestic market may be overstocked just now," said Ross Norman, an independent analyst. China's total gold imports via Hong Kong nearly tripled month on month in April, hitting their highest level in more than a year, Hong Kong Census and Statistics Department data showed on Monday. "Gold bullish bets remain predominant on the SHFE despite lower trading volume," said Hugo Pascal, a precious metals trader at InProved. In Hong Kong, gold was sold at a premium of $0.30 to $1.30, while in Singapore gold traded between at-par prices and a $2.50 premium. In Japan, bullion was sold at par to a premium of $0.50. (Reporting by Anmol Choubey in Bengaluru and Rajendra Jadhav in Mumbai; additional reporting by Brijesh Patel; Editing by Eileen Soreng)
Reuters
3 days ago
- Business
- Reuters
Asia Gold: India gold demand lags as prices rise, wedding buying cools
May 30 (Reuters) - Physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of wedding season kept buyers at bay, while premiums slipped in top consumer China. This week, Indian dealers were offering a discount of up to $31 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies, down from last week's discount of up to $49. "The wedding season is wrapping up and the monsoon has kicked in, so jewellers are expecting a seasonal dip in demand. That's why they're holding off on making new purchases," said a Mumbai-based bullion dealer with a private bank. Domestic gold prices were trading around 94,900 rupees per 10 grams on Friday after hitting a one-month low of 90,890 rupees earlier this month. In China, bullion changed hands at par to a $15 premium an ounce over the global benchmark spot price, compared with premiums of $16-$30 last week. "Shanghai Gold Exchange drawdowns have eased to the lows of this year while imports in the last few weeks have been exceptionally high, suggesting the Chinese domestic market may be overstocked just now," said Ross Norman, an independent analyst. China's total gold imports via Hong Kong nearly tripled month on month in April, hitting their highest level in more than a year, Hong Kong Census and Statistics Department data showed on Monday. "Gold bullish bets remain predominant on the SHFE despite lower trading volume," said Hugo Pascal, a precious metals trader at InProved. In Hong Kong, gold was sold at a premium of $0.30 to $1.30, while in Singapore gold traded between at-par prices and a $2.50 premium. In Japan, bullion was sold at par to a premium of $0.50.
India.com
15-05-2025
- Business
- India.com
Is this deal between China and Saudi Arabia going to end dollar dominance in the world?
(File) China Saudi Arabia Trade: The US Dollar (USD) is the the most dominant currency in global trade, accounting for nearly 54 percent of of foreign trade invoices worldwide, according to various reports. But US' main rival, China, aims to topple the dollar's dominance and promote its own currency, Renminbi (RMB), in bilateral trade. According to reports, China has inked an 'oil for gold' agreement with Saudi Arabia, under which Beijing will pay for Saudi oil in RMB, and Riyadh will convert any trade plus into gold through the Shanghai Gold Exchange (SGE). As per reports, the SGE is building secure vaults in Saudi Arabia to make it easier for the oil-rich Kingdom to convert their trade surplus into gold. Challenge to dollar dominance? While the China-Saudi Arabia deal is undoubtedly a major move on part of Beijing to increase the share of RMB in global trade, which stands at less than 5 percent at present, it is unlikely to cause any significant hit to the US Dollar, which is expected to remain the dominant currency for the foreseeable future, according to economists. Experts believe the Saudi-China agreement will have little impact on the dollar as its use in global trade will decline only if its utility as a medium of exchange, reserve asset and unit of account plummets. Saudi-China deal not a step towards gold standard The agreement to convert trade surplus into gold is also not a novel one, and has been used Central Banks globally for years. These banks have been converting their reserves into gold, and the trend has witnessed a surge in recent years, as per market experts. According to experts, converting currency into gold is not a step towards establishing a gold-standard in the global market because this would require conversion at a fixed exchange rate as one of the pre-requisites. While China's RMB can be converted into gold at market value, this is no way implies that gold will replace the dollar as the medium of payment, they say. Why gold can't replace currency in global trade? Experts also pointed how the elasticity of supply of flat currency gives it a major advantage over physical commodities like gold, as the currency supply can be moderated via fiscal and monetary policies, as mandated by the liabilities of the government and its regulated institutions. Governments worldwide closely monitor the supply of flat currency, ensuring market prices remain stable and deflation does not occur. Central banks often set a target of about 2 percent for inflation, beyond which the attractiveness of the currency decreases, including its utility in terms of storing value. As an example, if the dollar weakens, the real income of exporting countries who use it as a mode of payment, also goes down, while the purchasing power of their reserves also plumets.
