Asia Gold-Indian jewellers lift shutters; discounts prevail in top hubs

SouthGobi Resources

11/06/2021 13:32

* China discounts at $7-$12/oz vs last week's $20-$50 
    * Japanese prices between $0.30 discount to $0.50 premium

    By Rajendra Jadhav and Eileen Soreng
    June 11 (Reuters) - Physical gold demand crept up this week
in top hubs India and China though dealers were still forced to
offer discounts, while businesses limped back to life in India
as some COVID-19 restrictions were eased. 
     Some Indian states have begun easing restrictions as
infection cases abate.  urn:newsml:reuters.com:*:nL2N2NN03B
    "Slowly, businesses are opening up in a few states. As new
coronavirus cases are falling, expectations are most states will
ease restrictions in the next few weeks," said Mukesh Kothari,
director at Mumbai bullion dealer RiddiSiddhi Bullions.
    Dealers offered discounts of up to $12 an ounce over
official domestic prices, inclusive of 10.75% import and 3%
sales levies. That was unchanged from last week, a level of
discount not seen since mid-September 2020.
    "Jewellers were sceptical. They don't know how quickly
demand would recover. That's why they're not showing interest in
making purchases at the higher level," said another Mumbai-based
bullion dealer with a gold importing bank.
    On Friday, local gold futures  MAUc1  traded at around
49,200 rupees per 10 grams.
    India's gold imports in May surged over nine-fold from
2020's low base to 12 tonnes.  urn:newsml:reuters.com:*:nL3N2NK0ZO
    Discounts in top consumer China narrowed to about $7-$12 per
ounce against global benchmark spot gold rates  XAU= , from last
week's $20-$50, amid stricter COVID-19-related restrictions. 
    "We believe demand will continue, though supply will
diminish, China will be trading back at premium levels," said
Bernard Sin, regional director, Greater China at MKS. 
    Premiums of $0.50-$1 per ounce were charged in Hong Kong,
while in Singapore, premiums remained at $1.20-$1.50 amid muted
demand.
    "We've seen less demand from retail and even the wholesale
side," said Brian Lan, managing director at Singapore dealer
GoldSilver Central, adding a semi-lockdown has led to reduced
footfall in stores. 
    Dealers were hopeful of a rebound as restrictions are
relaxed from next week.  urn:newsml:reuters.com:*:nL2N2NI0HZ
    Japanese dealers sold gold at a $0.30 discount to $0.50
premium. Higher prices muted activity. 

 (Additional reporting by Brijesh Patel and Arundhati Sarkar in
Bengaluru; Editing by Pravin Char)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
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