Asia Gold-India dealers deepen discounts, China premiums retreat

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Many investors selling gold to book profit- India dealer

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Chinese premiums slip to $8-$25/oz

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Healthy retail demand for silver, gold- Singapore dealer

Nov 18 (Reuters) – Physical gold dealers in India were
forced to offer the biggest discounts in four months this week
as a jump in domestic prices hit demand, while Chinese premiums
fell sharply as buying slowed in the top consumer.

The depreciation of the rupee helped to drive Indian
gold prices to 53,200 rupees per 10 grams, the highest
since April 19, as dealers passed on the extra costs of buying
on the dollar-denominated international market.

“Buyers are not willing to make purchases at the current
price level. Many investors are selling gold and booking
profit,” said Prithviraj Kothari, managing director of
RiddiSiddhi Bullions.

This prompted dealers to offer discounts <XAU-IN-PREM> of
about $26 an ounce versus official domestic prices – inclusive
of 15% import and 3% sales levies – compared with last week’s
$4 discounts.

Jewellers were not buying as retail demand waned, said
Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold
House.

“Buyers will take time to adjust to higher prices. For the
next few weeks, demand will remain muted unless prices correct,”
Ajmera said.

In China, premiums <XAU-CN-PREM> eased to $8-$25 an ounce
over benchmark spot prices, from last week’s $12-$30.

Peter Fung, head of dealing, Wing Fung Precious Metals, said
on the retail side, people were mostly selling jewellery.

Chinese premiums started spiking around end-October,
sometimes to as high as $45, given steady demand and lower
supply but have eased this month.

China’s central bank controls how much gold enters the
country via quotas to commercial banks.

Bernard Sin, regional director, Greater China at MKS PAMP,
said there was no news of fresh quotas and added measures to
“resolve systemic financial risk have slowed the buying spree”.

Premiums could fall further as tensions with the West ease,
Sin added.

In Hong Kong, bullion changed hands at $1-$2.5 an ounce
premiums while Singapore dealers charged $1.50-$3 premiums.

“We’re seeing healthy gold and silver demand at the retail
level,” said Vincent Tie, sales manager at dealer Silver
Bullion.
(Reporting by Arundhati Sarkar in Bengaluru, Rajendra Jhadav in
Mumbai; Editing by Arpan Varghese and Barbara Lewis)