Reportedly gold demand in top-consumer china was subdued this week as investors awaited outcome of crucial trade negotiations with the United States, while purchases in india during a key festival were lower than usual because of higher prices. india celebrated dussehra festival on Tuesday, when buying gold is considered auspicious.
"Consumers were struggling to adjust (to) the higher prices. Jewelers across the country have reported nearly 50 per cent drop in dussehra sales from a year ago," Anantha Padmanabhan, chairman of the All india Gem and Jewelry Domestic Council (GJC) told Reuters. Gold futures were trading around 38,100 rupees per 10 grams on Friday after hitting a record high of 39,885 rupees last month. Gold prices have risen more than 21 per cent so far in 2019.
Dealers offered discounts of up to $20 an ounce on official domestic prices this week, slightly down from a discount of $21 last week. The domestic price includes a 12.5 per cent import tax and 3 per cent sales tax. "We were hoping (the) market will come to premium this week due to dussehra and lower imports, but demand was very weak," said a mumbai based dealer with a bullion importing private bank.