Physical gold dealers in India were forced to offer steeper discounts last week as record high prices accelerated a post-festival slowdown in demand, with the rise in local prices hurting activity in other Asian hubs as well.
Indian dealers offered discounts of up to $9 an ounce over official domestic prices, inclusive of 15% import and 3% sales levies, up from discounts of $6 a week earlier. Demand was good for a few days after the Diwali festival last month, but rising prices have brought the market to a standstill, a New Delhi-based bullion dealer said. Local gold prices hit a record high last week, and have risen more than 11% in two months.
In top gold consumer China, dealers charged premiums of $25-$35 per ounce over global spot prices, which were hovering near a seven-month peak, versus the $20-$40 premiums a week earlier.
Hong Kong dealers charged $1.00-$2.00 per ounce premiums. In Singapore, premiums rose slightly to $1.25- $3.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
