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Gold demand picks up in Asian hubs as prices slid to six-month low

Dealers in India were charging a premium of up to $1 an ounce over official domestic prices this week

Reuters  |  Mumbai/Bengaluru 

Gold

demand picked up in most Asian centres this week as prices of the slid to a six-month low, with being sold at a premium in for the first time in seven weeks.

Spot touched its lowest since Dec. 19 at $1,260.84 an ounce on Thursday, weighed down by outlook for higher interest rates in the and as the dollar climbed to an 11-month peak.

"Demand has improved slightly due to the correction, but still many buyers are waiting for prices to fall further," said Ashok Jain, of Mumbai-based

In the Indian market, gold futures were trading at around 30,562 rupees per 10 grams, down nearly 3 per cent from last week's peak of 31,424 rupees.

Dealers in were charging a premium of up to $1 an ounce over official domestic prices this week, for the first time since the week of May 4. Last week, they were offering a discount of up to $7.5, the biggest since Sept. 9. The domestic price includes a 10 per cent import tax.

"Many jewellers are postponing purchases expecting prices could fall below $1,250 (an ounce)," said a Mumbai-based at a private bullion importing

In Singapore, premiums charged this week rose slightly to a range of 80 cents to $1 over benchmark spot, from the 60 cents to $1 range last week.

"We see quite good demand (in Singapore). Individuals and businesses are picking up gold because now it is cheaper than before," said Brian Lan, at GoldSilver Central in

In Japan, gold was being sold at a premium of about 25 cents this week after being sold at par with the global benchmark for several weeks.

In top consumer China, however, premiums were unchanged from the previous week at $5-$6 an ounce as demand remained quiet amid a weaker yuan, said Ronald Leung, chief at Lee Cheong Gold Dealers in Hong Kong.

Premiums in Hong Kong ranged between 50 cents and $1.20 this week, little changed from last week's 60 cents to $1.30 range.

First Published: Sun, June 24 2018. 21:35 IST
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