Asian Buyers Snap Up Gold as Prices Plummet

Lower gold prices have attracted physical buyers back to key Asian markets, particularly in India and Singapore. In India, gold prices fell to Rs 145,538 per 10 grams this week, marking a two-month low. The price correction has led to increased buying interest, although some consumers are still waiting for prices to drop further.

Harshad Ajmera of Kolkata-based wholesaler JJ Gold House noted that the correction made buyers more interested, resulting in narrower discounts from sellers. Discounts in India have decreased sharply, with dealers offering discounts of up to $14 an ounce over official domestic prices, down from $43 an ounce the previous week.

In China, physical gold trade is occurring above the global benchmark, with premiums ranging from $5 to $10 an ounce. However, buyers are closely monitoring price movements. Bernard Sin, regional director for Greater China at MKS PAMP, stated that periods of price consolidation or declines are prompting increased buying activity.

International spot gold prices have fallen by over 6% in September, and dealers in Singapore have reported stronger physical buying, as indicated by dealer inventories. Japan's physical gold market remained stable, with prices sold at discounts of up to $0.25 an ounce or premiums of up to $0.5.