Rising Gold Prices Dent Indian Retail Demand

SEATTLE (Scrap Monster): The dealers in India offered physical gold at discount for the fourth week in a row. The consumers continued to defer gold purchases, mainly on account of elevated domestic gold prices. The physical gold demand remained muted in China as well, showed latest retail demand data from the top gold consumer nation.

The yellow metal was offered at a discount of $9 per ounce over official domestic prices by dealers. The week’s discount stood significantly higher, when matched with the discount of $5 per ounce last week.

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WGC China Gold Market: Local Premiums Surged in September

According to retailers, the market recorded strong trends in the initial half of October. However, the unprecedented surge in gold prices impacted the market, denting retail gold demand. The gold prices soared to touch levels of $739.01 per 10 grams during the latest week, not much away from the all-time high price of $742.68 per 10 grams recorded during May this year. The demand is expected to remain muted during the upcoming festive season, retailers noted.

In China too, demand was not substantial enough to drive a higher premium. The premiums over global spot prices ranged between $25 and $40 per ounce, more or less unchanged from the prior week.