Local gold prices hit an all-time high of $700.02 per 10 grams this week, forcing dealers to offer discounts of as much as $42 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, versus a discount of $24 last week. Dealers and jewellers have been postponing purchases in hopes the government would cut import duty in the upcoming budget.
Trading in top consumer China was closed for the Lunar New Year holiday. The easing of restrictions in China and the normalising of arrangements with the West augers well for the macro as well as for gold specifically. However, concerns remain over the sharp downturn in physical sales from price-sensitive India.
Hong Kong markets were closed from Monday to Wednesday, with premiums of $0.50-$2.50 quoted over global spot prices for the rest of the week. Dealers in Singapore and Japan said individuals sold gold to cash in on higher prices.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished