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Demand for gold up in Asia
Posted on: 20/Aug/2016 12:31:44 PM
Ahead of the festive season in India and China, demand for gold has gone up in Asia. In India, the world`s second biggest gold consumer, discounts narrowed as jewellers started buying for the festive season. Dealers were offering a discount of up to USD 52 an ounce over the global spot benchmark, down from up to USD 60 last week.
According to experts, Large jewellers have started building inventory for the upcoming festival season. In coming weeks, demand is expected to pick up further if prices remain stable at the current level. India`s gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half as monsoon rains spur rural demand during the peak festive season.
Two-thirds of gold demand in India comes from villages, where jewellery is a traditional investment. The quarter ending in December typically accounts for about a third of India`s gold sales since it includes the start of the wedding season and festivals like Dhanteras and Diwali, when buying gold is considered auspicious.
Say the experts, Physical side is seeing some inquiries and most of them are looking with a long-term perspective as there is too much uncertainty in the market. Gold, often perceived as a hedge against financial uncertainties, has risen 27 percent this year to trade at $1,347 an ounce on Friday, and is on track for its biggest annual gain since 2010.
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