Market - - Dec 22,2017
The demand for gold across major centers in Asia were unresponsive ahead of the holiday weekend as a modest bounce in prices weighed on investor desire.
As reported, gold prices were rebounded to the highest in two weeks at $1,268.91 on Thursday after falling to a five-month low last week. There are several statements has been taken place across major centers in Asia due to this action.
China is well-known as a top consumer of gold, as per the analysis, premiums quoted this week in the country were about $10 an ounce to the global benchmark, slightly transformed from last week's, i.e. $9-$10 range. Considering this, Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong stated that “There hasn't been much activity because we've already seen lower levels”.
Gold demand in India also remained quiet due to slow retail purchases. Lately Ketan Shroff, managing director of Mumbai-based bullion dealer Penta Gold said that "Retail consumers are in holiday mood”. He further adds that “Jewelers are also taking a break. They will become active only in the first week of January”. It is also reported that jewelry dealers in India were offering a discount of up to $2 an ounce this week over official domestic prices, unchanged from the previous week. The domestic price includes a 10 percent import tax.
In Tokyo, gold was traded at par to a 25-cent premium to spot this week, largely unaffected due to a quiet market ahead of the year-end holidays. On a second note, in some sacks of southern India, retail demand is likely to improve during Christmas week, but that would not offset drops somewhere else in the country, a Mumbai-based dealer stated. The dealer also mentioned, over the past few days gold prices have recovered, but buyers are not sure about the upside. They think prices could fall again.