India gold premiums rise as jewellers boost festive stocks

By Rajendra Jadhav and Brijesh Patel BENGALURU/MUMBAI (Reuters) - Gold premiums in India jumped to their highest in nearly three months this week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace. Indians celebrate Dussehra on Sunday and Diwali and Dhanteras in November, when buying gold is considered auspicious. 'Investment demand was good in the last few days

Reuters October 24, 2020 00:06:52 IST
India gold premiums rise as jewellers boost festive stocks

India gold premiums rise as jewellers boost festive stocks

By Rajendra Jadhav and Brijesh Patel

BENGALURU/MUMBAI (Reuters) - Gold premiums in India jumped to their highest in nearly three months this week, as jewellers continued to stock up on hopes of more customers visiting stores as the festive season gathers pace.

Indians celebrate Dussehra on Sunday and Diwali and Dhanteras in November, when buying gold is considered auspicious.

"Investment demand was good in the last few days. Retail demand for jewellery is still weak, but it could improve during the festive season," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

On Friday, local gold futures traded at around 50,920 rupees per 10 grams. Prices hit an all-time high of 56,191 rupees in August.

Dealers charged premiums of $5 an ounce this week over official domestic prices, inclusive of 12.5% import and 3% sales taxes, versus the $1 premiums last week.

Jewellers have been banking on festive-season buying for a revival in demand and are offering lower prices, said a Mumbai-based dealer with a bullion importing bank.

In top consumer China, discounts narrowed to $30-$33.5 an ounce over global benchmark spot prices, versus $30-$35 discounts last week.

"Spending sentiment has remained soft," said Samson Li, Hong Kong-based precious metals analyst at Refinitiv GFMS.

However inventory "levels on the streets" have reduced as some companies, including wholesalers, buy up old precious metals, possibly to export at a later stage.

In Hong Kong, gold was sold between a $0.50 discount to a $1.50 premium.

In Singapore, premiums were unchanged at $0.80-$1.20 an ounce.

"We've seen a bit more of selling when prices were higher, but buying was quiet... Retail clients are selling," said Brian Lan, managing director at dealer GoldSilver Central.

Japanese gold was sold from flat to a $0.50 an ounce premium.

Meanwhile, the Bangladesh Jewellers Association raised prices of all types of gold by up to 2,333 taka ($27.57) per bhori or 11.664 grams.

($1 = 84.6300 taka)

(Reporting by Brijesh Patel and Nakul Iyer in Bengaluru, Rajendra Jadhav in Mumbai and Ruma Paul in Dhaka; Editing by Arpan Varghese and Rashmi Aich)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.