Aggressive Gold Buying from Jewellers As Prices Corrected – Gold Silver Reports

The week started with aggressive buying from jewellers as prices corrected, said Chanda Venkatesh, managing director of CapsGold, a bullion merchant in the southern city of Hyderabad.

A dip in gold prices earlier this week fuelled an uptick in physical gold demand in Singapore and India, with activity in the Indian market also gathering pace ahead of key festivals.

However, overall activity was muted due to the golden week holiday in top bullion consumer China.

In Singapore, sellers charged premiums between 50 and 70 cents an ounce over the benchmark, versus 50-80 cents last week.

Global benchmark spot gold prices fell to their lowest in nearly two months, at $1,458.50, early in the week, but have since recovered above the $1,500 level.

Read More : China Is on a Big Gold-Buying Friskines(Opens in a new browser tab)

“Demand was high earlier this week as prices went down briefly below the $1,500 mark. We believe this psychological benchmark will continue to affect investors’ decisions on what the right time for buying is,” said Joshua Rotbart, managing partner at J Rotbart & Co in Hong Kong.

Traders also hoped demand would increase in the final quarter as India gears up for festivals such as Diwali and Dussehra, when buying gold is considered auspicious.

“Generally, during this period, jewellers take time to increase purchases to have more variety in jewellery,” said Brian Lan, managing director at Singapore dealer GoldSilver.

The Indian market was also helped by a dip in domestic prices with gold futures trading around 38,200 rupees per 10 grams on Friday after falling to 36,771 rupees on Wednesday, the lowest since August 13.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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