This week, India's gold demand rose due to a price correction, while China's gold premium strengthened due to some safe-haven buying.
Smart Finance News App learned that despite market volatility causing some buyers to delay purchases, this week's gold demand in India has risen due to a price correction, and China's gold premium has strengthened due to some safe-haven buying.
A Mumbai gold dealer said, "There is a lot of suppressed demand in the market. Buyers are urgently waiting for a price correction. Now that the price has corrected, they are starting to make moves."
"However, the significant fluctuations in price have also left buyers confused."
On Friday, domestic gold prices in India were about 69,600 rupees per 10 grams, having touched a four-month low of 67,400 rupees on July 25.
Dealers are pricing each ounce of gold at a premium of up to 9 US dollars over the official domestic price, which includes a 6% import tax and 3% sales tax. This is higher than last week's premium of 7 US dollars.
A New Delhi dealer said that before the festival season this month, the price of gold had already corrected, and the industry expects to receive good orders at the India International Jewelry Show in Mumbai.
Chinese dealers are selling gold at parity to a premium of 18 US dollars, compared to last week's discount of 2 US dollars to a premium of 8 US dollars.
Bernard Sin, head of the MKS PAMP Greater China area, said that retail sales of gold jewelry in China are still sluggish, but people's interest in gold bars as a safe-haven asset is increasing.
In July, the People's Bank of China suspended gold purchases for the third consecutive month. Most analysts believe that the People's Bank of China will resume buying gold, but a few analysts predict that this suspension will continue for a few more months.
Japanese dealers are selling gold at a premium of 0.25 to 1 US dollar.
Japanese dealers said that when the Japanese stock market fell sharply earlier this week, people sold gold to get cash to hedge against other assets, and when gold prices fell, they bought back gold.
In Singapore, gold is sold at a price of parity to a premium of 1.25 US dollars per ounce, while in Hong Kong, the price of gold ranges from a discount of 0.5 US dollars to a premium of 2 US dollars per ounce.