Asian Gold Demand Sees Modest Improvement as Prices Pull Back
Physical gold demand in key Asian hubs has seen an improvement this week as prices have pulled back, enticing some buyers to return to the market. In India, domestic gold prices dropped to 145,538 rupees per 10 grams, their lowest level in nearly two months.
A Mumbai-based dealer with a private bank noted that gold could start trading at a premium next week if prices remain around current levels, as jewelers and investors are now showing more interest in buying due to the approaching festival season. Indians will celebrate Dussehra this month and Diwali in early November, when buying gold is considered auspicious.
In top consumer China, bullion traded at premiums of $5 to $10 an ounce to the global benchmark price. MKS PAMP's regional director for Greater China, Bernard Sin, stated that demand remains highly price-sensitive, with buyers becoming more active during periods of price consolidation or pullbacks.