The ravaging coronavirus pandemic in India has hit the country’s physical gold market, with dealers selling at discounts for the first time in 2021 as buyers stay away.
This week, dealers were selling at a $2 discount per ounce, including the 10.75% import duty alongside and 3% sales levies, Reuters reports.
As the country continues to record high Covid-19 cases, different states have imposed strict lockdown measures, with most stores remaining closed, a move that will potentially impact the metal’s overall demand.
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The World Gold Council is already projecting a slump in the country’s gold consumption by the end of Q2 2021. During Q1 2021, demand for gold surged 37% to 140 tonnes, catalyzed by high consumer demand and competitive prices for precious metals.
China’s prices remain unchanged
Elsewhere, in China, the gold prices remained unchanged from the last week, with premiums of $8-$10 being charged over the standard spot gold prices.
“We are seeing good volume exchange hands ahead of super long weekend in China. As long as interest rates remain low, we will continue to see investment interest shifting into gold,” said Bernard Sin, regional director, Greater China at MKS Switzerland.
For markets in Singapore, gold premiums stand at $1.5-$2.0 from $1.6-$1.8 recorded in the previous week.
For Japan, gold prices recorded flat premiums of $0.50 as the country recorded new COVID-19 emergencies in some regions.
At the start of April, most Asian countries had registered an increase in physical gold demand. The demand followed low prices, but interestingly, Indian jewelers remained cautious over the economic uncertainty amid the pandemic.
