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India discounts drop to nine-month low on pick up in festive demand

Reuters  |  MUMBAI/BENGALURU 

By Rajendra Jadhav and Sethuraman N R

MUMBAI/(Reuters) - for in India, the world's second-largest consumer, picked up as the festive season began and discounts narrowed, while across rest of the continued to improve.

traded within a narrow range throughout the week, after falling nearly 5 percent in the previous week.

discounts in narrowed to the smallest level in nearly nine months as prices fell during a key Hindu festival Dussehra boosted retail demand.

Dealers were offering at $2 an ounce discounts to official domestic prices this week, the narrowest since the week ending on January 23. Last week discounts were $4.

"During Dussehra was very good. Jewellery shops were crowded after a long time," said Fatechand Ranka, a jeweller based at Pune in western state of Maharashtra. celebrated the Dussehra festival on Tuesday.

"At the end of the month we have Diwali festival. If prices remain at the current range, then certainly will remain robust even during Diwali."

for usually strengthens in the final quarter of the year as gears up for the wedding season as well as festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.

prices in were about 29,700 rupees per 10 grams on Friday, after falling to 29,300 rupees on October 7, the lowest level since June 6.

"The improvement in retail has provided confidence to jewellers. They are now actively buying," said a Mumbai-based bullion dealer with a private bank.

Refiners and banks are raising imports as a sharp fall in discounts in the last few weeks made their business viable, he said.

in top-consumer China rose after the week-long National Day holidays and premiums were quoted around $4 an ounce against the international benchmark.

"A healthy premium of local China prices to world price is encouraging physical purchases and is evidence of good demand," HSBC analyst James Steel said in a note.

"The resumption of China buying could be important."

In Singapore, premiums were mostly unchanged at 50 to 60 cents an ounce and prices were quoted at a premium of around 60 to 90 cents in Hong Kong.

"People are loving to buy at these levels. A lot of them are using physical as a hedge against the volatile stock markets," said Ronald Leung, chief dealer, Lee Cheong Dealers, Hong Kong.

Prices in Tokyo were at a premium of 25 cents an ounce, unchanged from last week.

(Reporting by Rajendra Jadhav in and Nallur Sethuraman in Bengaluru; Editing by Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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India discounts drop to nine-month low on pick up in festive demand

MUMBAI/BENGALURU (Reuters) - Demand for gold in India, the world's second-largest consumer, picked up as the festive season began and discounts narrowed, while demand across rest of the Asia continued to improve.

By Rajendra Jadhav and Sethuraman N R

MUMBAI/(Reuters) - for in India, the world's second-largest consumer, picked up as the festive season began and discounts narrowed, while across rest of the continued to improve.

traded within a narrow range throughout the week, after falling nearly 5 percent in the previous week.

discounts in narrowed to the smallest level in nearly nine months as prices fell during a key Hindu festival Dussehra boosted retail demand.

Dealers were offering at $2 an ounce discounts to official domestic prices this week, the narrowest since the week ending on January 23. Last week discounts were $4.

"During Dussehra was very good. Jewellery shops were crowded after a long time," said Fatechand Ranka, a jeweller based at Pune in western state of Maharashtra. celebrated the Dussehra festival on Tuesday.

"At the end of the month we have Diwali festival. If prices remain at the current range, then certainly will remain robust even during Diwali."

for usually strengthens in the final quarter of the year as gears up for the wedding season as well as festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.

prices in were about 29,700 rupees per 10 grams on Friday, after falling to 29,300 rupees on October 7, the lowest level since June 6.

"The improvement in retail has provided confidence to jewellers. They are now actively buying," said a Mumbai-based bullion dealer with a private bank.

Refiners and banks are raising imports as a sharp fall in discounts in the last few weeks made their business viable, he said.

in top-consumer China rose after the week-long National Day holidays and premiums were quoted around $4 an ounce against the international benchmark.

"A healthy premium of local China prices to world price is encouraging physical purchases and is evidence of good demand," HSBC analyst James Steel said in a note.

"The resumption of China buying could be important."

In Singapore, premiums were mostly unchanged at 50 to 60 cents an ounce and prices were quoted at a premium of around 60 to 90 cents in Hong Kong.

"People are loving to buy at these levels. A lot of them are using physical as a hedge against the volatile stock markets," said Ronald Leung, chief dealer, Lee Cheong Dealers, Hong Kong.

Prices in Tokyo were at a premium of 25 cents an ounce, unchanged from last week.

(Reporting by Rajendra Jadhav in and Nallur Sethuraman in Bengaluru; Editing by Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

India discounts drop to nine-month low on pick up in festive demand

By Rajendra Jadhav and Sethuraman N R

MUMBAI/(Reuters) - for in India, the world's second-largest consumer, picked up as the festive season began and discounts narrowed, while across rest of the continued to improve.

traded within a narrow range throughout the week, after falling nearly 5 percent in the previous week.

discounts in narrowed to the smallest level in nearly nine months as prices fell during a key Hindu festival Dussehra boosted retail demand.

Dealers were offering at $2 an ounce discounts to official domestic prices this week, the narrowest since the week ending on January 23. Last week discounts were $4.

"During Dussehra was very good. Jewellery shops were crowded after a long time," said Fatechand Ranka, a jeweller based at Pune in western state of Maharashtra. celebrated the Dussehra festival on Tuesday.

"At the end of the month we have Diwali festival. If prices remain at the current range, then certainly will remain robust even during Diwali."

for usually strengthens in the final quarter of the year as gears up for the wedding season as well as festivals such as Diwali and Dussehra, when buying the precious metal is considered auspicious.

prices in were about 29,700 rupees per 10 grams on Friday, after falling to 29,300 rupees on October 7, the lowest level since June 6.

"The improvement in retail has provided confidence to jewellers. They are now actively buying," said a Mumbai-based bullion dealer with a private bank.

Refiners and banks are raising imports as a sharp fall in discounts in the last few weeks made their business viable, he said.

in top-consumer China rose after the week-long National Day holidays and premiums were quoted around $4 an ounce against the international benchmark.

"A healthy premium of local China prices to world price is encouraging physical purchases and is evidence of good demand," HSBC analyst James Steel said in a note.

"The resumption of China buying could be important."

In Singapore, premiums were mostly unchanged at 50 to 60 cents an ounce and prices were quoted at a premium of around 60 to 90 cents in Hong Kong.

"People are loving to buy at these levels. A lot of them are using physical as a hedge against the volatile stock markets," said Ronald Leung, chief dealer, Lee Cheong Dealers, Hong Kong.

Prices in Tokyo were at a premium of 25 cents an ounce, unchanged from last week.

(Reporting by Rajendra Jadhav in and Nallur Sethuraman in Bengaluru; Editing by Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

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