INSUBCONTINENT EXCLUSIVE:
highest in almost three years this week as local prices surged to record peaks, while Asian hubs, barring China, saw aggressive selling from
customers as global bullion rates scaled a 6-year peak.The price of gold in India hit a record high of Rs 35,430 per 10 grams on Friday,
tracking gains in the world market and helped by a weak rupee.Dealers this week were offering a discount of up to $15 an ounce over official
domestic prices, the highest since September 2016
Dealers offered discounts of about $7 last week
make purchases," said a Mumbai-based dealer with a bullion importing bank.Demand will remain subdued for at least the next few weeks unless
prices correct significantly, the dealer said.Almost all jewellery shops in Mumbai's Zaveri Bazaar, India's biggest bullion market, were
deserted on Friday, dealers said."The price level is encouraging people to sell old gold
Buying is negligible at this price," said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.Gold imports in May
government source said on Tuesday.In rural areas, demand has softened as farmers are focusing on sowing of summer-sown crops, Mr Jain
said.Premiums in top gold consumer China ranged from $14 to $20 an ounce over the global benchmark, up from $10 to $12.50 in the previous
week."There was safe-haven demand as well, as people are betting that US will cut rates sometime this year," said Samson Li, a Hong
Kong-based precious metals analyst with Refinitiv GFMS."But, jewellery is the bulk of the Chinese consumption and is still sagging in a dull
season."Markets in Singapore and Hong Kong saw premiums remaining flat at around 60 cents and 50 cents to $1.20, respectively, with
customers selling back gold to lock profits."We got back so much from customers that the refinery could not accept any more from us at
least until next Wednesday," a Singapore-based bullion dealer said.Spot gold surpassed the key $1,400 an ounce level on Friday, scaling a
six-year peak at $1,410.78.Japanese customers were enjoying higher prices by selling back gold and as a result, the metal was being sold at
a $1 discount, a Tokyo-based trader said.
