Asian Gold Demand Sees Modest Uptick on Price Pullback
Asian gold demand has picked up modestly this week as lower prices have drawn some buyers back into the market. The decrease in prices, particularly in India, has made buyers more interested and narrowed the discounts offered by sellers.
In India, domestic gold prices fell to 145,538 rupees per 10 grams, their lowest in nearly two months. Dealers quoted discounts of up to $14 an ounce over official domestic prices this week, compared with last week's discounts of up to $43.
A Mumbai-based dealer with a private bank stated that 'gold could start trading at a premium next week if prices stay around current levels.' The approaching festival season, including the Dussehra and Diwali celebrations in India, is also expected to boost demand for gold. In top consumer China, bullion traded at premiums of $5 to $10 an ounce to the global benchmark price.