INSUBCONTINENT EXCLUSIVE:
attracted buying as economic jitters burnished the metal's appeal as a haven from risk.Interest in silver was also firm, with some
consumers seeing it as undervalued, dealers said.Global benchmark spot gold hit a six-year high on Tuesday and was headed for a third
straight week of gains, up 1 per cent
Silver was also on track for a 1.5 per cent weekly rise."We're consistently seeing people coming to sell gold," said Brian Lan, managing
director at Singapore dealer GoldSilver Central
"Refineries are all almost at maximum capacity now due to scrap gold selling.""On the other hand, we're seeing more buying of silver because
many investors see it as an undervalued asset."Consumers have also been buying gold every time there is a brief price dip, he added.An
inversion of the US yield curve this week for the first time since 2007 exacerbated concerns a recession is on the way, prompting inflows
into safe havens such as gold and the Japanese yen.In top gold consumer China, premiums eased slightly to $6-$9 per ounce over the
benchmark, from $9-$10 last week."Interest is coming mostly from the investment side," said Ronald Leung, chief dealer at Lee Cheong Gold
Dealers in Hong Kong.In Singapore, gold was sold at a premium of $0.50-$0.80 an ounce, unchanged from the week ending August 2.In India,
demand remained subdued as domestic prices soared, tracking gains in overseas market and a weak rupee
Gold futures hit a record high of Rs 38,666 per 10 grams earlier this week."People are making smaller purchases than normal due to the price
rise," said B Govindan, chairman of Kochi-based Bhima Jewellery.Dealers offered discounts of up to $33 an ounce over official domestic
prices, down from last week's $37 discounts, which were the highest since August 2016
The domestic price includes a 12.5 per cent import tax and 3 per cent sales tax.Jewellers were not placing new orders due to weak retail
demand, said a Mumbai-based dealer with a private bullion importing bank, adding "everyone is desperately waiting for a price
correction".India's gold imports in July plunged 55 per cent from a year ago to a three-year low.In Hong Kong, premiums were unchanged at
The trade war and months of protests have sparked fears of a recession in the financial hub."Demand is very weak because of high prices and
the unrest has affected the retail market, especially jewellery demand," said a bullion dealer in Hong Kong.In Japan, gold was sold at par
versus the benchmark compared with $0.25 discounts last week, with most investors selling gold because of the rising yen, a Tokyo-based
trader said.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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