Asia Gold-Price rebound, COVID-19 curbs put brakes on India buying

SouthGobi Resources

09/04/2021 13:12

* China, Hong Kong premiums unchanged from last week
    * India premiums ease to $3 versus $4 last week
    * Singapore premiums rise to $1.5-$2 this week
    * India's gold imports in March surge 471% Y-O-Y

    By Rajendra Jadhav and Brijesh Patel
    April 9 (Reuters) - Physical gold demand in India stalled
this week after local prices rebounded from a one-year trough
and coronavirus restrictions were imposed, while buyers in other
major Asian hubs were also put off by an uptick in prices.
    "This week gold prices rose in the international market and
rupee also fell. That led to a big jump in local prices, which
consumers are struggling to digest," said Mukesh Kothari,
director at Mumbai bullion dealer RiddiSiddhi Bullions.
    On Friday, local gold futures  MAUc1  were trading at around
46,600 rupees ($623.99) per 10 grams after falling to 43,320
rupees last week, the lowest level since April 2020.
    Dealers were charging a premium of up to $3 an ounce over
official domestic prices, inclusive of 10.75% import and 3%
sales levies, down from the last week's $4.
    Jewellers curtailed buying as state governments have started
imposing restrictions to arrest the spread of COVID-19, said a
Mumbai-based dealer with a bullion importing bank.
    India's richest state, Maharashtra, imposed stringent
COVID-19 restrictions from Monday, after a rapid rise in
infections.  urn:newsml:reuters.com:*:nL1N2LX06R
    Meanwhile, India's gold imports in March surged 471% from a
year earlier to a record 160 tonnes, as a reduction in import
taxes and a correction in prices from record highs drew retail
buyers and jewellers.  urn:newsml:reuters.com:*:nL1N2LU1WO
    In Singapore, premiums of $1.5-$2 an ounce were charged over
benchmark spot gold prices, compared with $1-$2 an ounce
premiums last week.  XAU= 
    "Demand is rather muted because of higher gold prices,
compared to last week when prices were lower and investors who
wanted to take positions have already taken it," said Brian Lan,
managing director at dealer GoldSilver Central.
    Chinese customers were charged premiums of $7-$10 an ounce,
while in Hong Kong, premiums of $0.50-$1.80 an ounce were being
charged, both unchanged from last week.
    In Japan, gold was sold at a $0.50-$1 an ounce premium over
benchmark prices.
    


($1 = 74.6800 Indian rupees)
    
    

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