Asia Gold-Price dip lures some buyers, activity still muted in India

SouthGobi Resources

01/04/2021 13:56

* China premiums little changed at $7-$10/oz 
    * India premiums ease to $4 versus $5 last week

    By Rajendra Jadhav and Brijesh Patel
    April 1 (Reuters) - Physical gold demand saw an uptick in
some Asian hubs this week, as lower prices buoyed the metal's
demand, while jewellers in India were still cautious into the
end of the financial year.
    "From the next week, demand should improve. The industry was
busy with year-end closing this week," said Ashok Jain,
proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
The Indian fiscal year runs from April to March.
    Dealers charged premiums of up to $4 an ounce this week over
official domestic prices, inclusive of 10.75% import and 3%
sales levies, down from the last week's $5.
    On Thursday, local gold futures  MAUc2  were trading around
45,000 rupees ($613.40) per 10 grams after falling to 44,108
rupees earlier this week, their lowest level since April 2020.
    "Retail demand could rise in coming weeks if prices remain
around this level," a Mumbai-based dealer with a bullion
importing bank said, adding, "Only concern is lockdown. If
government imposes lockdown, then suddenly demand would falter."
    In Singapore, premiums of $1-$2 an ounce were charged over
benchmark spot gold prices, dealers said.  XAU= 
    "We've seen very good demand both on the retail side and
also on the wholesale side as (spot) prices went below $1,700
this week. Wholesalers and retailers are using this opportunity
to buy gold," said Brian Lan, managing director at dealer
GoldSilver Central.
    Chinese customers were charged premiums of about $7-$10 an
ounce, little changed from last week on stable demand.  GOL/ 
    "Physical demand continued to be healthy in China and low
spot prices gave another boost to trigger a buying spree," said
Bernard Sin, regional director for Greater China at MKS.
    In Hong Kong, premiums eased to $0.5-$1.8 an ounce from
$1-$2 last week.
    In Japan, gold was sold between flat to a premium of 50
cents, compared with premiums of $1 last week. 


($1 = 73.3620 Indian rupees)

 (Reporting by Brijesh Patel and Diptendu Lahiri in Bengaluru,
Rajendra Jadhav in Mumbai; Editing by Rashmi Aich)
 ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848
5832, Outside U.S. +91 8067493865; Reuters Messaging:
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