INSUBCONTINENT EXCLUSIVE:
Weddings are one of the biggest drivers of gold purchases in India as gold is a popular giftBengaluru / Mumba: Gold dealers in India offered
a discount this week due to plentiful supplies and slack demand during the wedding season, with other regions in Asia expecting improvement
in buying ahead of the Christmas and Chinese New Year festivities
Dealers in India offered a discount of up to $2 an ounce on official domestic prices, compared to a premium of $1 last week
Domestic prices include 12.5% import tax and 3% sales tax."Demand is modest from jewellers, but there is ample supply from refiners that are
aggressively selling in the market," said Harshad Ajmera, a gold wholesaler in Kolkata
India's gold imports in November jumped 78% from a month earlier to the highest level in five months as jewellers in the world's second
biggest market for the metal restocked after a fall in prices."Assuming good demand during wedding season, banks and refiners have raised
imports in the last few weeks," said a Mumbai-based dealer with a private bullion importing bank
Weddings are one of the biggest drivers of gold purchases in India as bullion in the form of jewellery is a popular gift.Demand is expected
to recover in top consumer China, where traders charged premiums of $4-$6 an ounce over benchmark prices from $4-$5.5 last week
"Demand has dried up compared to last week, but is still higher than late last month and earlier this month," said Samson Li, a Hong
Kong-based precious metals analyst at Refinitiv GFMS
The Chinese new year beginning on January 25 is expected to lift demand starting the end of December, he added.The Chinese festival is also
expected to improve demand in Singapore, with many retailers offering promotions for bullion, Silver Bullion sales manager Vincent Tie said
Sellers in Singapore charged premiums of $0.60-$0.80 an ounce over the benchmark, versus last week's $0.60-$0.70."If (benchmark) prices come
down a little bit, we will see some buying on the wholesale side," said Brian Lan, managing director at Singapore dealer GoldSilver, adding
that lower prices would also support demand during Christmas
International benchmark spot gold prices were on track for their biggest weekly gain since late-OctoberPremiums in Hong Kong rose to
$0.50-$0.60 an ounce from $0.30-$0.55 in the prior week, amid ongoing unrest in the Chinese-ruled city
"The shops are still opening, but people visit less," said Dick Poon, general manager, Heraeus Metals Hong Kong Ltd
In Japan, gold was sold at a premium of $0.50, the same as last week.
