Asia Gold Festivities trigger buying spree in India, but volumes lag
In India, prices jumped to a record high of 79,775 rupees per 10 grams earlier this week, marking a nearly 33% increase since last year's Diwali
Gold demand in India jumped this week amid festival purchases, although volumes were lower than usual due to record-high prices.
"Retail buying jumped as consumers want to make purchases during the auspicious period. But many were making token-buys because of higher prices," said a Hyderabad-based jeweller.
In India, prices jumped to a record high of 79,775 rupees per 10 grams earlier this week, marking a nearly 33% increase since last year's Diwali.
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The share of coins and bars in total sales increased this year than usual as buyers were unwilling to pay increased making charges for jewellery, said a New Delhi-based jeweller.
Indian dealers earlier this week charged a premium of up to $1 an ounce over official domestic prices on Dhanteras, inclusive of 6% import and 3% sales levies, but offered a discount later in the week of up to $5, compared with last week's $4 discount.
"In volumes, sales were lower this year than last year. However, considering the price rally, even sales with modest volume drops look promising since, in value terms, they are much higher," said a Mumbai-based bullion dealer with a private bank.
Diwali and Dhanteras, celebrated this week, are festivals when buying gold is considered auspicious.
"It was a good sales week due to festivities after a long quiet period," said Brian Lan, managing director at GoldSilver Central.
In Singapore, gold was sold between $0.80 discount to $2.20 premium .
Demand for physical silver and platinum is rising in Singapore based on dealers' inventory, Hugo Pascal, precious metals trader at InProved, said.
Dealers in China offered discounts of $11-$14 .
China's gold consumption in the first three quarters of 2024 slid 11.18% as high prices dented jewellery demand.
The ongoing challenges within the Chinese economy continue to impact consumer behaviour despite stimulus package, Pascal added.
In Japan, traders quoted at $0.25 discount to $0.5 premium.
There were some purchases and limited selling as people focused on protecting their assets, a Tokyo-based trader said.
