Asia Gold-Festivities spark slight demand in India, China on holiday
Indian jewellers unsure about festive demand - dealer
India domestic prices jumped to a record high last week
Japanese dealers offer $0.25 discount to $1 premium this week
By Rajendra Jadhav and Daksh Grover
Oct 4 (Reuters) -Gold demand in India improved slightly this week due toan upcoming festival but remained lower than usual because of record-high prices, while Chinesemarkets were closed for aholiday.
"With theDussehra festivalcoming up, retail demand is starting to pick up, but it's still much lower than usual. The record-high prices are causing a lot of shoppers to hold off on making purchases," said a Kolkata-based jeweller.
Indians will celebrate Dussehra on Oct. 12, when buying gold is considered auspicious.
Indian dealers offered discountsXAU-IN-PREM of up to $21 an ounce this week over official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week’s discount of $19.
Domestic prices MAUc1 jumped to a record high of 76,000 rupees per 10 grams last week, an increase of nearly 13% from a four-month low of 67,400 rupees reached on July 25.
Jewellers are not confident about demand during the festive season and are taking it slow on building up stock, said a Mumbai-based bullion dealer with a private bank.
Chinese markets were closed for the Golden Week holiday. Gold discounts in the top consumer widened last week to $16-$7 as demand continued to remain weak.
In Hong Kong, gold was sold between a $2 discount and $2 premium XAU-HK-PREM.
There hasn't been any special interest in physical gold in Hong Kong and Singapore, andcurrent market dynamics are favouring spot gold over physical gold, said Peter Fung, head of dealing atWing Fung Precious Metals, Hong Kong.
Singapore dealers sold bullion between a$0.60 discount and $2.20 premium XAU-SG-PREM
"We continue see more selling than buying. Most retail buyers made only small purchases," said Brian Lan at Singapore-based dealer GoldSilver Central.
In Japan, traders XAU-TK-PREM quoted a $0.25 discount to $1 premium.
Reporting by Daksh Grover in Bengaluru and Rajendra Jadhav in Mumbai; Editing by Sonia Cheema
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