Price retreat buoys demand in India; activity muted elsewhere

Physical gold demand in India improved slightly this week as a price pullback lifted buying interest among consumers, while activity in other top Asian hubs remained lacklustre. 

Gold prices in India closed at 99,838 rupees ($1,139.61) per 10 grams on Thursday after hitting a record high of 102,250 rupees last week.

“Many retail consumers are waiting for a price correction, but with prices steady around 100,000 rupees for the past few months, some buyers have begun purchasing,” said a Mumbai-based jeweller.
Indian dealers offered discounts of up to $6 per ounce to official domestic prices, inclusive of 6% import and 3% sales levies, compared with an up to $9 discount to a premium of $2 last week.

Jewellers placed healthy orders with manufacturers at the India International Jewellery Show for the upcoming festival season despite elevated prices, said a Mumbai-based bullion dealer with a private bank. Indians will celebrate the Dussehra and Diwali festivals in October, when buying gold is considered auspicious