This week physical gold buying decreased in vigor, not just in the Asian centers but in India as well. What does it mean? It simple meals; the value of gold decreased due to which Indian gold merchants and sellers were offering great discounts on Gold Metal for the last few weeks! This happened because bullion actually rebounded from the recent rows.
The uptick in local rates: discounted Gold with moderated demand
India is the world’s second-biggest gold market with huge consumer base after China. Each year India consumes around 900 tons of gold which are really big in amount! But, the scenario has changed this week as Indian consumers have been selling gold with a discounted price of up to $2 per ounce in different jeweler centers. This discount is now being offered over the domestic gold pricing which is double as compared to the previous week’s discount of $1 per ounce. Point to note: the domestic gold price in India includes a 10% importing tax as well.
What was the exact pricing last week?
Last week, gold was trading at the cheapest pricing of 30,607 INR per 10 grams in the Indian market. This is the lowest gold pricing in the whole year till today! According to the statistics, the pricing has decreased by more than 4% over the last seven months. According to a Mumbai based gold dealer, the pricing started appreciating massively in the last few days! Earlier this week, Indian currency was trading around 71.93 per dollar earlier this week. Due to price rise, the Indian gold market has lost its normal momentum like other Asian centers.
The situation in other countries:
China is the world’s biggest gold trading market where last week’s gold pricing was varying from $3 to $6 per ounce which was actually lower than the previous week ($6 to $7 per ounce). After a very slow week, there was very few physical gold buying on Friday in China at a pricing of 6$. The situation in Hong Kong is; gold pricing was around 70 cents to $1.30 per ounce which is lower than the global benchmark ($0.90 to $1.40). In Singapore, gold pricing was $0.80 – $1.20 per ounce and In Japan, it fell to as low as 30 cents per ounce!