Asia Gold-Price dip tempts some buyers

PC Jeweller

23/08/2019 14:35

* China gold premiums edge up to $8-$10/oz from $6-$9 last
week
    * Near-record prices curb demand in India
    * Hong Kong unrest squeezes bullion market
    * Silver on track for third weekly gain
    * India's gold market: http://tmsnrt.rs/2b1Tl6J

    By Brijesh Patel and Rajendra Jadhav
    BENGALURU/MUMBAI Aug 23 (Reuters) - Most Asian hubs
experienced a slight uptick in physical gold demand this week as
consumers took advantage of a retreat in prices, with cheaper
silver continuing to be the preferred bet.
    While global benchmark spot gold prices  XAU=  were on
course for a weekly decline, they hovered close to $1,500 an
ounce as uncertainties surrounding U.S.-China trade and fears
over the global economy offered support.  GOL/ 
    "Demand has picked up because investors have realised that
geopolitical risks are still around and are looking for safe
havens," said Brian Lan, managing director at Singapore dealer
GoldSilver Central.
     Silver, meanwhile, was heading for a third straight weekly
gain.
     "Silver is still the choice asset, especially for new
investors, because it is poor man's gold," Lan said.
     In top gold consumer China, gold premiums edged slightly
higher to $8-$10 an ounce over the benchmark, versus $6-$9 last
week.
    "In Hong Kong, demand is not so good. You don't have
travellers going there," said Ronald Leung, chief dealer at Lee
Cheong Gold Dealers in Hong Kong.
    Premiums in Hong Kong were unchanged at $0.50-$1.20, with
prolonged protests sparking fears that the financial hub's
economy is entering a slowdown phase.  urn:newsml:reuters.com:*:nL4N25J1DX
    "The unrest has hit the retail market and jewellery demand,"
said one Hong Kong bullion dealer.
    In Singapore, gold was sold at a premium of $0.50-$0.80 an
ounce, unchanged from last week.
    "We see customers looking for a good point of entry into the
gold market and, with prices retracting, some of them have
jumped at the opportunity," said Vincent Tie, sales manager at
Silver Bullion. 
    "We're seeing an increase in demand for silver from
customers based in Hong Kong, who are buying and storing with us
in Singapore because of the uncertainties."
    In India, gold was being sold at a discount for the 12th
straight week, with domestic prices soaring.
    "Consumers are postponing purchases due to higher prices.
They think prices may not sustain at higher levels," said Chanda
Venkatesh, managing director of CapsGold, a bullion merchant in
the southern city of Hyderabad.
    Gold futures  MAUc1  were trading around 38,000 rupees per
10 grams on Friday after hitting a record high 38,666 rupees
this month. 
    Dealers were offering a discount of up to $31 an ounce over
official domestic prices, down from last week's $33 discounts.
The domestic price includes a 12.5% import tax and 3% sales tax.
    Jewellers have nearly stopped purchases from banks because
they have been receiving a large amount of scrap, said one
Mumbai-based dealer at a private bullion-importing bank.
    In Japan, gold was sold at par against the benchmark, with a
strong yen capping demand, a Tokyo trader said.

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India's gold market    http://tmsnrt.rs/2b1Tl6J )
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 (Reporting by Brijesh Patel in Bengaluru and Rajendra Jadhav in
Mumbai; Editing by Arpan Varghese and David Goodman)
 ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848
5832, Outside U.S. +91 8067493865; Reuters Messaging:
Brijesh.Patel1.thomsonreuters.com@reuters.net))