By the World’s Best Investment Manager
Gold demand in India saw an uptick this week as prices corrected, attracting buyers who were waiting for a favorable entry point. However, market volatility has left some buyers hesitant to make purchases.
Domestic gold prices in India stood at around 69,600 rupees per 10 grams, after hitting a four-month low of 67,400 rupees on July 25. Dealers were charging premiums of up to $9 an ounce over official prices, inclusive of import and sales levies.
Meanwhile, in China, gold premiums firmed up due to safe-haven buying. Retail sales of gold jewellery in China remained subdued, but there was a growing interest in gold bars as a secure asset.
Japan saw gold being sold at premiums of $0.25 to $1, with investors turning to gold as a hedge against market volatility. In other Asian markets like Singapore and Hong Kong, gold was sold at varying premiums and discounts.
Overall, the correction in gold prices ahead of the festival season in India has sparked renewed interest from buyers. The ongoing India International Jewellery Show in Mumbai is expected to further boost demand in the coming days.
Analysis: The recent price correction in gold has attracted buyers in India, while safe-haven buying in China has led to firmer premiums. Market volatility and upcoming festivals are key factors to watch for in the gold market, which could impact prices and demand in the near term.