gold price in India rose to 53,462 rupees/10 grams this week, the highest level since mid-April. The global spot gold price rose above $1,800 an ounce.
“The market has come to a standstill. Nobody wants to buy at this level. Buyers are standing by and seeing if this rally can sustain,” said a Mumbai-based bullion dealer. .
Dealers in India have provided a Exemptions up to $18/oz this week from the official domestic price – including 15% import tax and 3% sales tax, down from $21 last week.
Meanwhile, the supply of old “scrap” jewelry and coins have surged in the past few days as some consumers look to cash in on higher prices, said a Chennai-based bullion dealer.
Premiums in China have fallen to $2-$12 an ounce this week from benchmark spot prices from $10-$15 last week.
“Demand may stop if the situation spirals out of control for security reasons,” said Bernard Sin, regional director, Greater China at MKS PAMP.
Sin added that there have been no major shipments of gold into the country and no news of new quotas being issued either.
China’s central bank controls the amount of gold entering the country through quotas for commercial banks.
However, sources told Reuters that China will announce an easing of COVID quarantine procedures in the coming days.
In Hong Kong, bullion changes hands between a $2 discount and a $2.50 spread. In Singapore, a premium of $1.50-$2.50 is charged.
Brian Lan, managing director of dealer GoldSilver Central, said: “Premiums continue to be stable in Singapore as supply delays lead to a bit of scarcity.
In Japan, gold sells for more than $0.50.