Domestic prices were trading around 72,800 rupees per 10 grams, after hitting a record high of 74,442 rupees last month
Physical bullion demand in India, the world’s second-largest gold consumer, slowed down this week as prices approached near record high levels, dampening retail purchases in the absence of festivals.
“Indian consumers are price sensitive. Their buying patterns have been changing; they wait for price corrections and buy when they feel comfortable,” said Amit Modak, chief executive of PN Gadgil and Sons, a jeweller based in the western city of Pune.
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Domestic prices were trading around 72,800 rupees per 10 grams, after hitting a record high of 74,442 rupees last month.
Indian dealers offered a discount of up to $13 an ounce over official domestic prices“ inclusive of 15% import and 3% sales levies, versus last week’s discount of $10.
Jewellers are not keen to build stocks at the current price level, as there is no sign of recovery in retail purchases, said a Mumbai-based dealer with a private bullion importing bank.
In top consumer China, dealers charged premiums of $18-$25 per ounce over international spot prices this week compared with $18-$26 last week.
Traders noted that Chinese demand is likely to remain subdued as summer months approach, a seasonal period that typically sees lower activity.
“Future developments like import quota releases and global price movements could spark renewed interest (from China) in the latter half of the year,” Bernard Sin, regional director, Greater China, at MKS PAMP said.
Gold was sold at par to $2.20 premiums in Singapore and at par to $2 premiums in Hong Kong.
In Japan, bullion was sold at par to $0.5 premiums, slightly lower from last week.
“Activity was quiet due to the bad weather condition this week, but buying interest remains strong,” a trader based in Tokyo said.
Elsewhere, the World Gold Council in its annual survey found that more central banks plan to add to their gold reserves within a year.
