Asia Gold-India discounts at over 2-month highs; China stimulus plan fails to impress
ASIA-GOLD/DEMAND (PIX):Asia Gold-India discounts at over 2-month highs; China stimulus plan fails to impress
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Price recovery disrupting wedding season demand-Indian dealer
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China discounts jump to $19.4-$25 per ounce this week
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International spot gold prices headed for weekly gains
By Rajendra Jadhav and Rahul Paswan
Dec 13 (Reuters) - Gold discounts in India widened this week to their highest level in over two months as a rebound in domestic prices during the wedding season curtailed demand, while China's stimulus measures did little to revive consumer confidence in the key market.
In India, domestic prices rose to 79,120 rupees ($932) per 10 grams earlier this week after falling to 73,300 rupees last month.
"Due to the price rise, demand decreased sharply this week. Instead of buying, some investors were even selling gold purchased at lower prices," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.
Indian dealers this week offered a discount
The price recovery has been disrupting wedding season demand, which is crucial for the next few months, said a Mumbai-based dealer with a private bullion importing bank.
International spot gold prices were headed for a weekly gain buoyed by firm rate cut bets and recent news of China resuming gold purchases in November after a six-month hiatus.
Top gold consumer China pledged that it will adopt an "appropriately loose" monetary policy next year to help strengthen its economy.
Peter Fung, head of dealing at Wing Fung Precious Metals, Hong Kong does not expect China stimulus news to significantly impact demand, as gold prices remain extremely high.
Dealers in China were offering discounts between $19.4-$25 per ounce, compared with last week's $11-$15 discount.
Demand might increase slightly as we get closer to the Chinese New Year but people might buy less as it would be super expensive considering the high prices, said Dick Poon, general manager at Heraeus Metals Hong Kong Ltd.
Premium in Singapore was at $1.50, a trader said, while in Hong Kong, gold was sold at $1.50-$2.00 premiums.
In Japan, a trader
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Business NewsNewsIndiaAsia Gold-India discounts at over 2-month highs; China stimulus plan fails to impress
First Published:13 Dec 2024, 12:52 PM IST
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