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Zawya
21-03-2025
- Business
- Zawya
India gold discounts hit 8-month high as record prices curb demand
Discounts offered on gold in India touched a more than eight-month high this week as demand slumped after spot prices surged past record highs. Indian dealers offered a discount of up to $41 an ounce over official domestic prices, up from up to $39 an ounce last week. Domestic gold prices hit a record high of 89,796 rupees per 10 grams earlier this week and have risen over 15% so far this year. "The price just keeps climbing with no break. Every week, it's hitting new highs. Customers are just sitting back, waiting for a dip," said a New Delhi-based bullion dealer. India's gold imports are set to tumble 85% in February from a year-ago to their lowest in 20 years. However, discounts are still rising due to very weak demand, said a Mumbai-based dealer with a bullion-importing bank. In China, gold traded at a discount of $2-$16 under spot prices. Domestic gold prices have fallen sharply to a discount to international price, reflecting a significant tapering in local demand, Ross Norman, an independent analyst, said. China's gold consumption in 2024 slumped 9.58% on-year to 985.31 metric tons, data from the China Gold Association showed, as high gold prices curtailed jewellery demand. Purchases of gold jewellery, which account for half of the total, plunged 24.7% to 532.02 tons, according to the data. However, Chinese institutional demand for gold ETFs remains buoyant, while the central bank continues to accumulate gold, albeit at modest reported levels, Norman said. In Singapore, gold traded at a premium of $1.80-$2.50. Meanwhile, dealers in Hong Kong charged premiums between $0.50 and $2 per ounce . People are hesitating to buy gold except for investment purposes, which is being driven by safe-haven demand, said Peter Fung, head of dealing at Wing Fung Precious Metals. In Japan, bullion prices were sold between a premium of $1.0 and a discount of $5.5, a trader said. (Reporting by Rahul Paswan in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Sonia Cheema)
Yahoo
21-03-2025
- Business
- Yahoo
India gold discounts hit 8-month high as record prices curb demand
By Rajendra Jadhav and Rahul Paswan (Reuters) - Discounts offered on gold in India touched a more than eight-month high this week as demand slumped after spot prices surged past record highs. Indian dealers offered a discount of up to $41 an ounce over official domestic prices, up from up to $39 an ounce last week. Domestic gold prices hit a record high of 89,796 rupees per 10 grams earlier this week and have risen over 15% so far this year. "The price just keeps climbing with no break. Every week, it's hitting new highs. Customers are just sitting back, waiting for a dip," said a New Delhi-based bullion dealer. India's gold imports are set to tumble 85% in February from a year-ago to their lowest in 20 years. However, discounts are still rising due to very weak demand, said a Mumbai-based dealer with a bullion-importing bank. In China, gold traded at a discount of $2-$16 under spot prices. Domestic gold prices have fallen sharply to a discount to international price, reflecting a significant tapering in local demand, Ross Norman, an independent analyst, said. China's gold consumption in 2024 slumped 9.58% on-year to 985.31 metric tons, data from the China Gold Association showed, as high gold prices curtailed jewellery demand. Purchases of gold jewellery, which account for half of the total, plunged 24.7% to 532.02 tons, according to the data. However, Chinese institutional demand for gold ETFs remains buoyant, while the central bank continues to accumulate gold, albeit at modest reported levels, Norman said. In Singapore, gold traded at a premium of $1.80-$2.50. Meanwhile, dealers in Hong Kong charged premiums between $0.50 and $2 per ounce. People are hesitating to buy gold except for investment purposes, which is being driven by safe-haven demand, said Peter Fung, head of dealing at Wing Fung Precious Metals. In Japan, bullion prices were sold between a premium of $1.0 and a discount of $5.5, a trader said. Sign in to access your portfolio
Zawya
07-03-2025
- Business
- Zawya
High prices, year-end slowdown dampen India's gold demand
Gold demand in India was subdued this week owing to near-record high prices and jewellers' reluctance to purchase at the financial year's end. "Jewellers are wrapping up their accounts for the financial year, so they're not looking to buy anything new right now," said Harshad Ajmera of wholesaler JJ Gold House in Kolkata. India's financial year runs from April to March 31. Domestic gold prices were trading around 85,860 rupees per 10 grams on Friday after hitting a record high of 86,592 rupees last month. Indian dealers this week offered a discount of $10 to $21 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, down from the last week's discount of $12 to $27 an ounce. "The market's pretty quiet, and supplies are tight since banks are hardly bringing in any gold," said a Mumbai-based dealer with a bullion importing bank. In Singapore, gold traded between a $0.50 discount and a $3 premium. "As long as the market is volatile, we do see some clients coming to buy but demand is not as high as what we have seen last week," said Brian Lan, managing director at GoldSilver Central. In top consumer China, gold traded anywhere between a discount of $1 and a $3 premium over spot prices. People in China will buy gold for long term investment as its outlook is bullish, said Peter Fung, head of dealing at Wing Fung Precious Metals. Meanwhile, China's gold reserves rose to 73.61 million fine troy ounces at the end of February, as the central bank kept buying the metal for a fourth straight month. Dealers in Hong Kong charged on par to $2 per ounce premiums . In Japan, bullion was sold between a discount of $5 and a premium of $1, a trader said. "Gold has rediscovered its traditional role in being 'price elastic' with good buying on dips and selling on the highs," said independent analyst Ross Norman.
