Gold Prices Rise in Asia, Halting Retail Consumers and Jewelers2018-01-10 00:00:40
Author: Century Mining Database
With the gold price reaching new peak in 3 and half month, the demand for real gold in Asia this week is still weak, causing the retail consumers to stay away from the market.
Gold prices reached its new peak in 3.5 month on Thursday, with continued increase for the 4th week in a roll. On Friday, 0859GMT spot gold price dropped 0.36% to US$1318.12 per ounce.
China- the largest consumer of gold, dropped its premium last week from US$10 down to $6-7 per ounce.
Dealer Mr. Alex Thorndike from MKS PAMP stated: Gold has been strong in January during previous years…. directly linked to the increase in physical demand over lunar new years, however this has not been the case this year thus far.
The gold premium in Hong Kong remains at US$0.70 per ounce, same as last week.
India, the world's second largest consumer, reported gold price rising to its highest point this month, leading retail consumers and jewelers to maintain a positive outlook.
Owner of distributor JJ Gold House from Kolkata of east India, Mr. Harshad Ajmera said: Last month the price dropped, this month the price is rising, the buyers are confused and waiting for a clearer indication of trend.
Local price of gold has risen by 4.3%, in third week of December, price dropped to 28055rupee per 10 grams, it's the lowest since July 17th of 2017.
Traders in India are offering a US$2 discount per ounce this week, contrasting with the US$2 premium offered last week.
Local price is inclusive of the 10% import duty.
Mumbai Traders expressed, Jewelers were expected to resume purchase this week after the end of holidays last week, but the rise in price has caused them to postpone their purchases.
Temporary date from Precious Metals consulting firm GFMS indicated, Jewelers rebounded to replenish their inventory due to retail demand, causing the import of gold into India in 2017 increased by 67% year on year, reaching 855 tons.