Gold Demand Firms in India while China Premiums Ease

The physical market for Gold in India experienced a slight uptick in activity this week as consumers began preparations for the Akshaya Tritiya festival. Considered the second-most auspicious time for bullion purchases after Dhanteras, the festival is set for April 19. Despite the seasonal interest, elevated domestic prices have prevented a full recovery in retail volumes. Local prices in India traded near 152,800 rupees per 10 grams toward the end of the week, slightly down from a three-week high of 154,934 rupees. Dealers noted that while some bookings are occurring, the general market sentiment remains cautious. > Retail buyers have started making bookings for the Akshaya Tritiya festival, but footfalls are far lower than normal. In the wholesale market, dealers quoted a range from discounts of $6 an ounce to premiums of $9 an ounce over official domestic prices. These figures include the applicable 6% import and 3% sales levies. This shift follows last week’s deeper discounts of up to $8. > The atmosphere doesnt suggest the festival is approaching, said a Mumbai-based bullion dealer with a private bank. In China, the world’s largest consumer of the metal, premiums over global benchmark prices narrowed significantly. Rates fell to between $3 and $5 an ounce, down from the $12 to $17 range seen the previous week. Bernard Sin, regional director of Greater China at MKS PAMP, noted that the decline was driven by softer retail demand and market expectations regarding the loosening of import quotas. > Jewellery demand remains weak, down about 25% year-on-year, while investment demand is still resilient but more selective, Sin said. Despite the dip in retail interest, the central bank of China continued its strategic accumulation of the metal for the 17th month in a row, providing a floor for market sentiment. Globally, spot prices are on course for a third straight weekly increase, bolstered by optimism surrounding a potential ceasefire between the United States and Iran. Other regional markets showed varied activity. In Hong Kong, gold traded between par and premiums of $3 per ounce. In Japan, the metal was sold at a premium of $1, while Singapore saw premiums rise to a range of $1 to $3, up from the $0.25 to $1.80 seen in the prior period.