INSUBCONTINENT EXCLUSIVE:
Gold is an essential part of weddings in India and is a popular gift during festivals.Physical gold demand was healthy this week in the
country in the run up to a key festival and with the wedding season underway, while other top Asian hubs saw steady interest in bullion as
festivals."Retail demand is good due to weddings
Even after a recent price rise, buyers are making purchases," said Chanda Venkatesh, managing director of CapsGold, a bullion merchant based
in the southern city of Hyderabad.Dealers charged a premium of up to $2 an ounce over official domestic prices, down from last week's
premium of $2.50, the highest in nearly five months
The domestic price includes a 10 percent import tax and 3 percent sales tax."Supplies are limited in the market
Smuggling has come down significantly in last few weeks," said a Mumbai-based bullion dealer with a gold importing bank.Jewellers were
making purchases for the Akshaya Tritiya festival on May 7, the dealer added.Gold smugglers have slowed their operations over worries their
shipments will be caught up in seizures of cash, bullion, booze and drugs aimed at controlling vote-buying in the country's national
elections.In top bullion consumer China, on the other hand, premiums eased to $14-$18 an ounce over the benchmark, from a two-year high of
$20, a level last seen in March 2017, last week and the start of this week.Benchmark spot gold on Tuesday dropped to its lowest since
end-December, but has since recovered more than one percent to hit its highest in more than a week at $1,282.98 on Friday."Recent increases
in the Shanghai gold premium signals that the Chinese are using lower prices as a buying opportunity," Goldman Sachs said in a note on
Thursday.Some analysts also attributed the recent surge in China's gold premiums to a reduced supply of the metal.The comparatively lower
prices this week supported demand in other Asian centres as well, with premiums in Singapore rising to about $1 an ounce from last week's
60-70 cents range."We did see more sales with the correction of prices
Speaking with customers, many see prices under $1,300 as a buying opportunity," said Gregor Gregersen, CEO of Singapore retailer Silver
Bullion Pte Ltd.Purchases in Japan peaked earlier this week before local gold prices bounced back from nearly three-month lows, a
Tokyo-based trader said.Demand is now expected to fall further as the country's 10-day Golden Week holiday starts this weekend.In Hong
Kong, premiums were mostly unchanged at 60 cents-$1.20.Get the latest election news, live updates and election schedule for Lok Sabha
Elections 2019 on TheIndianSubcontinent.com/elections
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