Asia Gold-More takers as prices dip, Indian premiums rise

SouthGobi Resources

12/03/2021 12:26

* Chinese premiums rise to $8-$10/oz
    * Higher buying activity in China, Singapore, Japan

    By Rajendra Jadhav and Asha Sistla
    March 12 (Reuters) - Demand for physical gold surged in some
Asian hubs this week on the back of low domestic prices, with
fresh retail interest also allowing dealers to charge higher
premiums in India.
    Local gold futures  MAUc1  in India traded around 44,400
rupees per 10 grams on Friday, near a one-year low of 44,150
rupees they touched earlier in the week.
    "Retail demand has been gaining momentum. Showrooms,
especially in small towns, are witnessing good footfalls," said
Amit Modak chief executive officer at jeweller PN Gadgil and
Sons. 
    Dealers charged premiums of $6 an ounce over official
domestic prices, inclusive of 12.5% import and 3% sales taxes,
compared with last week's premium of $5.
    Jewellers have been replenishing inventory as sales have
improved significantly in the last few weeks, said a
Mumbai-based dealer with a bullion importing bank, adding
investors have started coin and bar purchases at current
rates. urn:newsml:reuters.com:*:nL1N2K70TY
    In Singapore, $1.60-$2.50 premiums were charged over
benchmark spot gold prices, compared with last week's $1.60-$2.
 GOL/ 
    "Quite a few customers -- more so from the retail and
wholesale side, including high net worth individuals-- picked up
gold because prices are lower," said Brian Lan, managing
director at dealer GoldSilver Central.    
    As for silver, refineries and mints continued to grapple
with a backlog of orders, Lan added.
    In China, premiums rose to $8-$10 an ounce from $6-$7 last
week, dealers said. 
    There was some safe haven buying as well, said Peter Fung,
head of dealing at Wing Fung Precious Metals in Hong Kong. 
    Lower prices also boosted demand in Japan, which saw 
premiums of $0.75.
    Bangladesh cut gold prices for the second time this month,
with the best quality gold priced at 69,109 taka ($817.47) per
Bhori (11.664 grams), amid lower global rates, the Jewellers'
Association said.

($1 = 84.5400 taka)

 (Reporting by Asha Sistla in Bengaluru, Rajendra Jadhav in
Mumbai and Ruma Paul in Dhaka; editing by Arpan Varghese and
Krishna Chandra Eluri)
 ((Asha.Sistla@thomsonreuters.com; If within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2808; Reuters Messaging: Reuters
Messaging: asha.sistla.thomsonreuters.com@reuters.net))