This week, India’s demand for physical gold soared high with local prices rapidly declining at an all time low since June 2019.
Moreover, dealers in India were reportedly charging a premium equivalent to $7 an ounce related to official domestic prices.
Comparatively, last week’s premium saw a hike equivalent to $5 inclusive of 12.5% import and 3% sales levies.
Declining prices have resulted in higher purchase of coins, bars and jewellery boosting sales according to bullion merchant based in Hyderabad.
Local gold futures witnessed a downfall up to 45,861 rupees per 10 grams on Friday which is the lowest level recorded so far since June 2020.
China being the world’s biggest bullion consumer has a gold demand projected to increase post the Chinese New Year celebrations.
Further, customers in China are charged premiums amounting to $5-$8 an ounce reportedly.
This is followed by premiums in Singapore charged within the range of $1-$2 an ounce on gold as per data.
However, gold in Hong Kong was sold out between a discount of $4 and a premium of $1.5.
Meanwhile, Japanese dealers were charging premiums within the range of $0.50 and $1 with demand for physical over lower local prices.
Due to refiners being unable to shift production overnight, demand for silver is projected to outrun production.
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