Editor’s Note
This article highlights a notable increase in physical gold demand across key Asian markets, driven by lower prices and seasonal factors. While consumers in China, Singapore, and Japan are already responding to the dip, Indian buyers remain cautious, anticipating further price declines. This divergence underscores the varied market dynamics at play in the region’s gold trade.
Physical gold demand in major Asian hubs rose this week, benefiting from a continued retreat in prices and a seasonal uptick, while Indian jewellers awaited a further slide before stocking up. Domestic markets in China, Singapore and Japan took cues from a dip in global benchmark spot gold prices.
Chinese customers were charged premiums of $6-$9 an ounce over the spot rates – around $1,770 an ounce on Friday – up from last week’s $4-$5. Premiums of $0.50-$1 per ounce were charged in Hong Kong.
In Singapore, current prices were prompting higher wholesale purchases by manufacturers and jewellers, with retail demand not as significant, said Brian Lan, managing director at dealer GoldSilver Central.
Singapore dealers charged premiums of $1.30-$1.60.
In Japan, gold was sold between no premiums and a $0.50 per ounce premium.
Dealers in India charged premiums of up to $2 an ounce over official domestic prices – inclusive of 10.75% import and 3% sales levies – versus last week’s $1 discounts.
Gold has traditionally been an integral part of weddings in India. Local gold futures were around 47,600 rupees ($633.43) per 10 grams, after falling to a one-month low of 47,350 rupees earlier this week.
