Gold demand in India eased on Friday after a modest pick-up earlier in the week, as prices rebounded from a three-month low. According to reports from Reuters, India gold prices rose to as much as ₹148,046 per 10 grams ($1,553) after having touched ₹140,450, the lowest level since March 27, on Tuesday. Prices fell about 8.4% in June, marking the first monthly drop since March, tracking volatility in international gold prices. As per Reuters, many buyers were waiting for a price correction and began making small purchases at the beginning of the week once prices corrected.
As reported by Reuters, many buyers were waiting for a price correction and began making small purchases at the beginning of the week once prices corrected. A Kolkata-based jeweller noted that "once prices corrected, they began making small purchases at the beginning of the week." Dealers quoted a premium of up to $5 an ounce and a discount of $7 over official domestic prices this week, inclusive of 15% import and 3% sales levies, compared to last week's premium of up to $6. According to a Mumbai-based bullion dealer with a private bank, "Jewellers were purchasing, but volatile prices made them cautious. The lean demand season has now started, as there are no major festivals soon."
According to Reuters, international spot gold was headed for its first weekly gain in five weeks and traded above the $4,100 level, as weak U.S. payrolls data eased Federal Reserve interest rate hike expectations. In China, the bullion traded at par to discounts of $2 an ounce to the global benchmark spot price, compared to last week's discount of $3 to $7. Peter Fung, head of dealing at Wing Fung Precious Metals, stated that $4,000 looks like a very good support and the market will stay there for quite a while, though there is still uncertainty making people hesitant to buy too much. He added that "If prices fall back below $4,000, we could see some further buying interest on the dip."
As reported by Reuters, in Hong Kong, gold traded between a $0.50 discount and a $1.70 premium, while in Japan, it was sold at a discount of $0.50. In Singapore, gold was sold between a $1 discount and a $1.60 premium. Peter Fung, head of dealing at Wing Fung Precious Metals, noted that $4,000 looks like a very good support and the market will stay there for quite a while, though there is still uncertainty making people hesitant to buy too much.
