Physical gold discounts widened in China and India this week as a surge in coronavirus infections restricted buying, while the reopening of retail outlets in Singapore saw a slight pick up in demand for the precious metal. Indian dealers were offering a discount of up to $18 an ounce over official domestic prices this week, from last week’s $13. The domestic price includes a 12.5 per cent import tax and 3 per cent sales tax.
Indian gold prices hit a record high of Rs 48,589 per 10 grams on Wednesday.
“The market is still very quiet, prices are high and only the investment side is buying… Demand is not likely to pick up any time soon, unless things go back to normal,” said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong.
“Physical stores have reopened with health and safety measures in place, a big build up of pent up demand is heading to retail outlets in Singapore,” said Spencer Campbell, director at SE Asia Consulting Pte Ltd.