November 1 — Gold demand in India surged this week as consumers made purchases for the festive season, although overall volumes remained lower than usual due to record-high prices.
“Retail buying increased as consumers sought to purchase during this auspicious time. However, many opted for token buys due to the high costs,” noted a jeweler based in Hyderabad. Earlier this week, gold prices hit a record high of 79,775 rupees per 10 grams, representing a nearly 33% increase compared to last year’s Diwali.
The proportion of sales from coins and bars rose this year as buyers hesitated to pay higher making charges for jewelry, according to a jeweler in New Delhi. Indian dealers initially charged a premium of up to $1 an ounce over official domestic prices on Dhanteras, factoring in 6% import and 3% sales levies. By later in the week, they offered discounts of up to $5, compared to last week’s $4 discount.
“Sales volumes are lower this year compared to last year. However, considering the price increase, even modest drops in volume appear promising in terms of value,” said a bullion dealer from Mumbai.
“It was a strong sales week due to the festivities following a prolonged quiet period,” added Brian Lan, managing director at GoldSilver Central.
In Singapore, gold was sold at a discount of $0.80 to a premium of $2.20. Demand for physical silver and platinum is increasing in Singapore, based on dealer inventory, according to Hugo Pascal, a precious metals trader at InProved.
In China, dealers offered discounts of $11 to $14, while gold consumption during the first three quarters of 2024 dropped by 11.18% due to high prices affecting jewelry demand. The ongoing economic challenges in China continue to influence consumer behavior, despite government stimulus efforts.
In Japan, traders quoted prices at a discount of $0.25 to a premium of $0.50. There were some purchases, but limited selling as individuals focused on asset protection, said a trader based in Tokyo.
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- India’s Gold Reserves Surge: RBI Reports 60% Increase in Domestic Holdings
