High gold prices, COVID spike dim lustre in top Asian hubs

Indian gold prices jumped to ₹55,558 per 10 gm earlier this month, not far from the all-time high of ₹56,191 hit in August 2020. Flow of old jewellery, coins moderate in India, says a dealer

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 ₹55,558 per 10 gm earlier this month, not far from the all-time high of ₹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% import and 3% sales levies — versus last week's $77 discounts, an almost 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.