Indian gold price surge hits demand

Gold discounts in India have risen to their highest in nearly eight months as record prices hit demand.

Gold discounts in India have widened to their highest in nearly eight months as record prices have dented demand, while buyers in other key markets have also been kept out.

Domestic gold prices in the Indian market hit a record high of 87,886 rupees per 10 grams on March 13. Illustrative photo

" Jewelers everywhere are seeing a sharp drop in customers. Demand has dropped significantly due to high gold prices ," said a gold dealer in Chennai, the capital city of the southern Indian state of Tamil Nadu.

Domestic gold prices in India hit a record high of 87,886 rupees per 10 grams on March 13. This week, gold dealers in India offered discounts of up to $39 per ounce over official domestic prices, including 6 percent import duty and 3 percent sales tax, compared with discounts of $10 to $21 last week.

“ Jewellers don’t want to accumulate high-priced inventory at the end of the financial year because they are busy closing their books, ” said a gold dealer in India’s biggest city Mumbai who works with a gold-importing bank. India’s financial year runs from April 2024 to March 31, 2025.

India's gold imports are expected to plunge 85% in February from a year earlier to hit a 20-year low, as demand is hit by record gold prices.

In China, the world's largest gold consumer, gold trades at a discount of $1 to a premium of $18 to the spot price. Traders in Hong Kong charge premiums ranging from breakeven to $2 per ounce.

In Japan, gold is being sold at a discount of $3 to a premium of $0.50. In Singapore, gold is trading at a discount of $0.50 to a premium of $3, according to a trader.

This week, gold traders in India offered discounts of up to $39 per ounce to the official domestic gold price, including 6% import duty and 3% sales tax, higher than discounts of $10 to $21 last week.

Source: https://congthuong.vn/gia-vang-an-do-tang-vot-anh-huong-den-nhu-cau-378478.html