Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD


SummaryAll NewsMarketScreener Strategies

Still no takers as Indian gold dealers offer discounts for fourth week

share with twitter share with LinkedIn share with facebook
09/11/2020 | 09:43am EDT
FILE PHOTO: A saleswoman displays a gold necklace to a customer inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai

Physical gold dealers in India were forced to offer discounts for a fourth straight week as bullion remained unattractive for most retail consumers.

In India, the second-biggest buyer after China, demand took a further hit due to the start of 'Shradh', a two-week period considered inauspicious to buy gold and other assets.

Local gold futures traded around 51,445 rupees per 10 grams on Friday, having hit an all-time high of 56,191 rupees last month.

Discounts eased to $30 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, from last week's $40.

While demand usually picks in the run up to the October- November festival season, a worsening COVID-19 outbreak has hammered sentiment, with India's economy shrinking by nearly a quarter in April-June.

"Even during the festivals, demand will remain lower than usual due to higher prices," said a Mumbai-based dealer with a bullion importing bank.

A dip in benchmark global spot prices however, triggered buying from customers in Singapore.

"As long as prices come down, we'll see more buying," and many more clients are now looking at gold, Brian Lan of dealer GoldSilver said, adding, however, that retail purchases were muted.

Premiums were unchanged at $0.80-$1.50 an ounce versus the benchmark.

"Sales were respectable, but the lowest in the past four weeks," Vincent Tie, sales manager at Silver Bullion said.

In China, demand remained weak with gold sold at $45-$50 discounts, versus last week's $56 level.

Discount may narrow, especially going into the fourth quarter wedding season, said Samson Li, a Hong Kong-based precious metals analyst at Refinitiv GFMS,

Japanese premiums were unchanged at $0.50.

In Bangladesh, domestic prices were hiked with the best quality gold priced at 74,008 taka ($874.49) per Bhori, or 11.664 grams, with a higher dollar driving up import costs.

Meanwhile, Thailand's central bank on Thursday said it would soon allow gold trading in U.S. dollars, as the baht remained strong.

By Rajendra Jadhav and Arundhati Sarkar

Stocks mentioned in the article
ChangeLast1st jan.
EURO / THAI BAHT (EUR/THB) -0.01% 37.02 Delayed Quote.11.17%
GOLD 0.95% 1905.6 Delayed Quote.25.01%
SILVER 1.87% 23.7815 Delayed Quote.36.05%
US DOLLAR / THAI BAHT (USD/THB) -0.28% 31.55 Delayed Quote.6.18%
share with twitter share with LinkedIn share with facebook
All news about GOLD
05:13pUtilities Up As Investors Hedge On Economic Stimulus, September Jobs Report -..
04:56pMaterials Down Amid Stimulus Doubts -- Materials Roundup
04:26pStimulus hopes lead markets into tough fourth quarter
04:23pStimulus hopes lead markets into tough fourth quarter
12:49pStimulus hopes ease markets into eventful fourth quarter
11:44aCoal baron Murray seeks U.S. benefits to treat his black lung disease - repor..
10:47aGold jumps 1% on stimulus hopes, sombre dollar
05:39aAustralian state defers Adani coal mine royalties ahead of election
09/30Gold set for worst month in nearly 4 years on dollar bounce-back
09/30China's Shandong Gold to buy Xinjiang-focused miner Hengxing
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term