Low gold prices spark flurry of activity in India

By Rajendra Jadhav and Shreyansi Singh
(Reuters) - India's physical gold demand gained momentum this week as retail buyers and jewelers rallied gold bars at nearly eight-month lows while Singapore continued to see steady interest in gold and silver.
Gold futures in India traded around 46,000 rupees per 10 grams, not far from the eight month low of 45,861 rupees hit last week.
"Consumers are quite satisfied with the current price level. The demand for jewelry from retail buyers is good," said Harshad Ajmera, owner of JJ Gold House, a wholesaler in the city of Calcutta.
He added that the rupee 50,000 mark poses a psychological price barrier for Indian consumers.
Dealers charged premiums of about $ 4 an ounce over official domestic prices, including 12.5% ​​import and 3% sales taxes, up from last week's premium of $ 7, which was an eight-month high.
Jewelers are aggressively building inventory as prices are attractive and retail demand is robust, said a Mumbai-based trader with a bullion import bank.
In Singapore, premiums of USD 1.4 to USD 2 per ounce were levied if demand was firm.
"We did a little more wholesale and retail purchases especially after the Lunar New Year," said Brian Lan, managing director of dealer GoldSilver Central, adding that interest in silver remains high.
Suppliers have reported late deliveries for gold and silver due to physical shortages in the world market, said Vincent Tie, sales manager at another Singapore dealer, Silver Bullion.
In traditional top consumer China, activity during the normally busy holiday season was dampened by COVID-19-related restrictions, according to traders with premiums of around $ 3 to $ 7 an ounce over reference gold prices.
China's net gold imports through Hong Kong declined in January as restrictions dampened market activity.
In Hong Kong, traders sold gold bars at a price between $ 1 and a premium of $ 1. Japanese traders charged a premium of $ 0.50.
(Reporting by Shreyansi Singh and K. Sathya Narayanan in Bengaluru and Rajendra Jadhav in Mumbai; editing by Arpan Varghese and Amy Caren Daniel)
In this article:
GC = F.
-2.81%
ZG = F.
-1.87%
SI = F.
-4.86%
ZI = F.
-0.31%
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