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High gold prices, Covid-19 spike dim lustre in top Asian hubs

Indian gold prices jumped to Rs 55,558 per 10 grams earlier this month, not far from the all-time high of Rs 56,191 hit in August 2020

Gold
Reuters
1 min read Last Updated : Mar 18 2022 | 11:54 PM IST
Elevated domestic prices dimmed retail appetite for physical gold in India this week, while a resurgence in Covid-19 cases prompted dealers in China and Hong Kong to offer discounts.

Indian gold prices jumped to Rs 55,558 per 10 grams earlier this month, not far from the all-time high of Rs 56,191 hit in August 2020.

“Prices are very volatile. Consumers are hoping prices may not sustain at higher levels,” said a Mumbai-based dealer with a private gold importing bank.

Dealers offered discounts of up to $45 an ounce over official domestic prices inclusive of 10.75 per cent import and 3 per cent sales levies — versus last week’s $77 discounts, a near six-year peak.

The flow of old jewellery and coins has moderated amid the price volatility, said a New-Delhi based bullion dealer.

In China, discounts widened to between $4 and $6 an ounce over global benchmark spot rates from $2 to $4 the previous week.

In Hong Kong, gold was sold at anywhere between on par with the benchmark rates to $4 discounts, versus $3 discounts last week.

Topics :Gold PricesPrecious metalsGold market

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