Asia Gold-Indian buyers put off by price rebound, Chinese jewellers stock up

SouthGobi Resources

11/12/2020 14:46

* India premiums ease, China at $19-$24/oz discount
    * Investment demand to dip when vaccines hit Japan-trader
    * HK dealers operate between $0.5/oz discount to $1.5/oz
premium

    By Rajendra Jadhav and Eileen Soreng
    BENGALURU/MUMBAI, Dec 11 (Reuters) - Retail consumers in
India slowed gold purchases this week put off by higher local
prices, while top consumer China saw a slight pick-up in demand
as jewellers stocked up going into year-end. 
    Local gold futures  MAUc1  rebounded to around 49,100 rupees
per 10 grams on Friday, from its lowest since June 19, at 47,550
rupees, touched last week. 
    "Retail jewellery demand has been coming down due to
volatile prices," said Anoop Chemmanur, managing director of
Chemmanur Jewellers in Bangalore.    
    Premiums eased to $2.5 an ounce over official domestic
prices, inclusive of 12.5% import and 3% sales levies, from $3.5
last week.
    "Jewellers are confused. There's no clear trend," said a
Mumbai-based bullion dealer with a private bullion importing
bank.
    In China, gold was sold at a discount of $19-$24 an ounce
against international spot prices  XAU= , versus $20 last week.
 GOL/ 
    "Vaccines will decide the future of the market,"  said
Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong
Kong.
    Chinese dealers have been forced to offer hefty discounts
for much of this year as the coronavirus pandemic hammered
demand, although the discount has narrowed in the past few
weeks.
    "Demand has been improving this week as jewellery retailers
have stocked up inventories for end of the year," said Samson
Li, Hong Kong-based precious metals analyst at Refinitiv GFMS 
    But fourth-quarter demand will likely be about 10% lower
than last year, Li added.
    The Singapore market saw premiums of about $1.20 an ounce.
    "At this time of the year, gold prices generally dip and
investors are waiting for that, because of which we're not
seeing much demand right now," said Vergel Villasoto, director
at Silver Bullion.
    In Japan, gold was sold between flat and a $0.50 premium.
    Gold investment demand could fall when vaccines hit the
Japanese market around January-February, a Tokyo-based trader
said.
    

 (Reporting by Eileen Soreng, Diptendu Lahiri in Bengaluru,
Rajendra Jadhav in Mumbai; Editing by Arpan Varghese and Amy
Caren Daniel)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))