Asia Gold-Higher prices stall demand in India; activity dim elsewhere

SouthGobi Resources

19/03/2021 12:09

* China premiums at $7-$9/oz versus $8-$10 last week
    * Jewellers reducing purchases due to COVID-19 curb fears-
Mumbai-based dealer 
    * Investors selling their bars this week- Tokyo-based
retailer

    By Rajendra Jadhav and Sumita Layek
    March 19 (Reuters) - Physical gold demand was subdued in
India this week as a rebound in domestic prices kept consumers
away, while activity in other top hubs also remained lacklustre.
    "Demand has started moderating due to rising prices. Retail
buyers are taking a pause," said Mukesh Kothari, director at
Mumbai gold dealer RiddiSiddhi Bullions.
    On Friday, local gold futures  MAUc1  were trading around
45,000 rupees per 10 grams after falling to 44,150 rupees
earlier this month, the lowest level since April 7.
    Dealers were charging a premium of up to $6 an ounce this
week over official domestic prices, inclusive of 10.75% import
and 3% sales levies, unchanged from last week.
    "Jewellers have been reducing purchases. They fear
authorities could put restrictions on shops and malls due to
rising coronavirus cases," said a Mumbai-based dealer with a
bullion importing bank.
    India's coronavirus infections surged to an over three-month
high on Friday, led by a record daily increase in the western
state of Maharashtra, prompting authorities to place fresh curbs
to restrain the spread of the disease.  urn:newsml:reuters.com:*:nL1N2LH069
    In China, gold was sold at premiums of $7-$9 an ounce over
benchmark spot gold prices, down from last week's $8-$10, while
in Hong Kong, premiums of $0.50-$1.70 were being charged versus
$0.80-$2.50 last week.  GOL/ 
    "It is quiet. There are no visitors as the borders are not
open so Hong Kong is losing a lot of Chinese customers," said
Ronald Leung, chief dealer for Lee Cheong Gold Dealers in Hong
Kong.  urn:newsml:reuters.com:*:nL4N2HY2LY
    In Singapore, premiums dipped to $1.5-$2 an ounce from
$1.60-$2.50 charged a week earlier.
    In Japan, premiums of $0.50-$0.75 an ounce were being
charged versus last week's $0.75.
    "We're seeing more investors selling their bars to us this
week," a trader at Tokyo-based retailer Tokuriki Honten said.

 (Reporting by Diptendu Lahiri in Bengaluru, Rajendra Jadhav in
Mumbai; Editing by Krishna Chandra Eluri)
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