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

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