Asia Gold-India activity slows as dealers close the books

SouthGobi Resources

26/03/2021 13:56

* China premiums at $7.5-$10/oz versus $7-$9 last week
    * Indian coronavirus cases jump to over 5-month peak
    * Japan premiums edge up to $1/oz

    By Rajendra Jadhav and Sumita Layek
    March 26 (Reuters) - Top Asian hubs saw moderate physical
gold buying this week, with activity in India muted as the
country's financial year was coming to a close, while jewellers
kept a wary eye on rising coronavirus cases.
    "Bullion dealers and jewellers are avoiding buying due to
the year end. They're busy with closing the books," said Harshad
Ajmera, the proprietor of JJ Gold House, a wholesaler in the
city of Kolkata. 
    The Indian fiscal year runs from April to March.
    Dealers charged premiums of up to $5 an ounce over official
domestic prices, inclusive of 10.75% import and 3% sales levies,
down from last week's $6.
    On Friday, local gold futures  MAUc1  traded around 44,500
rupees per 10 grams after touching an 11-month low of 44,150
rupees earlier this month.
    "Retail demand is steady despite rising coronavirus cases,
but jewellers are afraid authorities could start imposing
localized lockdowns," said a Mumbai-based dealer with a bullion
importing bank.
    COVID-19 cases jumped to an over five-month high in India on
Friday.  urn:newsml:reuters.com:*:nFWN2LN0V5
    In China, premiums rose to $7.5-$10 an ounce over global
benchmark spot prices, from last week's $7-$9, while Hong Kong
dealers reported premiums of $1-$2 versus $0.50-$1.70
previously.  GOL/ 
    "We're seeing some steady demand. If (spot) prices fall
below $1,700, we might see additional demand," said Peter Fung,
head of dealing, Wing Fung Precious Metals in Hong Kong.
    China's monthly net gold imports via Hong Kong in February
were little changed at 4.192 tonnes, as fresh import quotas were
not issued by the central bank.  urn:newsml:reuters.com:*:nL1N2LN0LB
    In Singapore, premiums were unchanged at $1.5-$2.
    "Demand hasn't been much for gold this week but silver has
seen some (interest)" and while investors are seeing gold as a
safe haven, the muted price action has dimmed their interest,
said Brian Lan, managing director at dealer GoldSilver Central.
    In Japan, premiums rose to $1 an ounce from $0.50-$0.75 last
week.

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