GET Stock QuotesNews18 APP
News18 English

SPONSORS

Powered by cricketnext logo
»
2-min read

Wedding Bells Set to Ring in Fresh Gold Demand in India

Gold is considered an essential part of weddings in India, second-biggest consumer of the metal in the world after China, and it is a popular gift on such occasions.

Reuters

Updated:November 4, 2017, 9:00 AM IST
facebookTwittergoogleskypewhatsapp
Wedding Bells Set to Ring in Fresh Gold Demand in India
In this file photo, salespersons wait for customers at a gold jewellery showroom in Chandigarh. (Photo: Reuters/Ajay Verma)
Mumbai: Demand for physical gold was lacklustre in top consumers India and China this week, while the lure of the metal remained stable in Singapore, but India's peak wedding season is expected to usher in renewed interest for bullion in coming weeks.

Gold is considered an essential part of weddings in India, second-biggest consumer of the metal in the world after China, and it is a popular gift on such occasions.

"The wedding season has started. In the next few weeks, there are many wedding dates, which will boost demand," said Kumar Jain, a Mumbai-based jeweller.

Dealers in India were charging a premium of up to $3 an ounce this week over official domestic prices, unchanged from last week. The domestic price includes a 10 percent import tax.

"Gold imports by (jewellery) export houses have fallen sharply in the last few weeks. That's why the market is in premium, despite moderate demand," said a dealer with a private bank in Mumbai.

In October, India tightened gold import norms for jewellery exporters by restricting them from importing the yellow metal only for export purposes and not for selling in the domestic market.

Meanwhile, in China, the market for the precious metal remained quiet, with premiums of $5 to $9 an ounce being charged over benchmark rates, as against the $6.50 to $10 range in the previous week.

Benchmark spot gold was on track to register a small weekly gain, hovering around the $1,275.00 level as of 0919 GMT on Friday, but still below Thursday's mark of $1,284.10, highest in nearly two weeks. [GOL/]

"Dips below the $1,270 level (toward the beginning of the week) spurred some buying, but the upside, (around the $1,280 level) limited purchases," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Premiums in Hong Kong remained more or less unchanged from last week, in the 60 cents to $1.20 range.

"Premiums are quite low, and except for periodic large sales, the market is quiet," said Joshua Rotbart, managing partner of J. Rotbart & Co in Hong Kong.

In Singapore, premiums rose to 70-90 cents from the 50 cents last week.

"There has been interest from two segments, the wholesalers and high net worth individuals, so it is still strong," said Loh Mun Chun, Director, Private Wealth at GoldSilver Central in Singapore.

"The wholesalers need to buy ... to produce jewellery, especially with some spillover demand coming from the Diwali and Dhanterras festivals, while the high net worth individuals ... buy to diversify their portfolio and they have the money."

Japanese markets were closed for a public holiday on Friday.
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Jubilant Food 2,093.30 +149.95 +7.72
Yes Bank 349.35 +8.15 +2.39
ITC 274.55 +1.15 +0.42
ICICI Bank 353.60 +7.45 +2.15
SBI 309.25 +6.00 +1.98
Company Price Change %Gain
ICICI Bank 353.55 +7.45 +2.15
HDFC 1,900.45 +3.45 +0.18
Sunteck Realty 417.15 +18.95 +4.76
Power Grid Corp 196.00 -1.20 -0.61
Maruti Suzuki 9,321.35 -37.65 -0.40
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 1,301.80 +58.10 +4.67
Adani Ports 433.45 +17.20 +4.13
Bajaj Finance 1,701.90 +41.20 +2.48
Yes Bank 349.35 +8.15 +2.39
ICICI Bank 353.60 +7.45 +2.15
Company Price Change %Gain
Adani Ports 433.75 +19.40 +4.68
Yes Bank 348.30 +8.05 +2.37
ICICI Bank 353.55 +7.45 +2.15
SBI 309.05 +6.30 +2.08
TCS 2,954.75 +44.65 +1.53
Top Losers
Company Price Change %Gain
Ambuja Cements 268.60 -7.05 -2.56
UltraTechCement 4,300.00 -108.65 -2.46
Infosys 1,143.45 -9.25 -0.80
Sun Pharma 572.10 -4.60 -0.80
Maruti Suzuki 9,323.95 -44.75 -0.48
Company Price Change %Gain
Infosys 1,143.25 -9.50 -0.82
Sun Pharma 572.00 -4.25 -0.74
Maruti Suzuki 9,321.35 -37.65 -0.40
ONGC 193.60 -0.45 -0.23
NTPC 172.35 -0.15 -0.09

Live TV