GOLD DEMAND SPIKES AFTER PRICES DIP

Mumbai/ Bengaluru, June 29: Gold demand improved this week in India as prices fell to their lowest level in nearly three months, while demand elsewhere in Asia remained tepid as investors waited for prices to fall further.

Gold futures in India were trading at around ` 30,419 ($ 444.4) per 10 grams by 1010 GMT on Friday, after falling to ` 30,365 earlier in the day, the lowest level since April 5. “There is modest rise in demand from jewellers, but still gold is trading at a discount,” said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in Kolkata.

Dealers in India were offering a discount of up to $ 2 an ounce over official domestic prices this week, compared with a premium of $ 1 last week. The domestic price includes a 10 per cent import tax.

“Improving retail demand is giving jewellers some confidence. They are placing small orders,” said a Mumbaibased dealer with a private bullion importing bank, adding “falling rupee is still confusing some.”

Rupee hit a record low on Thursday, limiting the drop in local gold prices.

Gold imports into India, the world’s second biggest buyer of the metal, could drop by 18 per cent in 2018 from a year ago, according to a Reuters poll.

Spot gold hit a more than six- month low this week at $ 1,250.98 per ounce, as demand for remained weak and as the dollar strengthened to near one- year highs.

— Reuters