Asia Gold-China gets holiday boost, Indian buyers cheer price dip

SouthGobi Resources

05/02/2021 14:32

* India premiums jump to six-month high
    * China's Shenzhen unveils plan to become gold hub
 urn:newsml:reuters.com:*:nL1N2KA1JP

    By Rajendra Jadhav and Bharat Gautam
    Feb 5 (Reuters) - Physical gold demand picked up in China
this week ahead of the Lunar New Year festival, while Indian
retail buyers cheered a sharp dip in domestic rates.
    Singapore dealers, meanwhile, flagged a possible supply
crunch fuelled by a surge in interest for silver.
    Chinese dealers charged premiums of $0.50-$5 an ounce over
benchmark spot gold prices  XAU= .
    Demand is "a little better due to the Lunar new year," said
Ronald Leung, chief dealer for Lee Cheong Gold Dealers in Hong
Kong, adding premiums could rise further if prices remain low
following the holiday.
    Gold rates in the top consumer flipped to a premium for the
first time in 11 months mid-January, as demand showed signs of
recovery from a pandemic-induced slump.  urn:newsml:reuters.com:*:nL4N2JQ2KY
    In Hong Kong, dealers sold bullion between a discount of
$2.50 an ounce and a $2 premium.
    In Singapore, customers were charged a $1.2-$2 an ounce
premium over benchmark prices, with a rush for silver continuing
even after spot prices for both silver and gold retreated after
a sharp retail-frenzy driven rally in silver, dealers said.
 urn:newsml:reuters.com:*:nL1N2K71WL
    "We're starting to see premium increases from some
refineries and bulk suppliers for gold and silver bars,"
pointing to supply tightness, Gregor Gregersen, founder at
Singapore dealer Silver Bullion. 
    In India, a dip in prices to a near eight-month trough drew
buyers in.
    This pushed Indian premiums to a six-month peak of up to $6
an ounce over official domestic prices, inclusive of 12.5%
import and 3% sales levies.  MAUc1  
    Many retail buyers who were awaiting a correction were now
making purchases, said Mukesh Kothari, director at Mumbai gold
dealer RiddiSiddhi Bullions.
    The combination of a cut in import duties on gold and silver
on Monday, a strong rupee and a retreat in global prices
contributed to the dip in Indian rates, a Mumbai-based dealer
with a bullion importing bank said.  urn:newsml:reuters.com:*:nL1N2K70TY

 (Reporting by Diptendu Lahiri and Bharat Govind Gautam in
Bengaluru, Rajendra Jadhav in Mumbai; editing by Arpan Varghese
and Emelia Sithole-Matarise)
 ((BharatGovind.Gautam@thomsonreuters.com; +91-80-6182-3021/
3590 (If within U.S. call 651-848-5832 );))