Bangalore: Retail consumers in India slowed gold purchases this week put off by higher local prices, while top consumer China saw a slight pick-up in demand as jewellers stocked up going into year-end.
Local gold futures rebounded to around 49,100 rupees per 10 grams on Friday, from its lowest since June 19, at 47,550 rupees, touched last week.
“Retail jewellery demand has been coming down due to volatile prices,” said Anoop Chemmanur, managing director of Chemmanur Jewellers in Bangalore.
Premiums eased to $2.5 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, from $3.5 last week.
“Jewellers are confused. There’s no clear trend,” said a Mumbai-based bullion dealer with a private bullion importing bank.
In China, gold was sold at a discount of $19-$24 an ounce against international spot prices, versus $20 last week.
“Vaccines will decide the future of the market,” said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.
Chinese dealers have been forced to offer hefty discounts for much of this year as the Covid-19 pandemic hammered demand, although the discount has narrowed in the past few weeks.
