* India’s gold consumption expected to rise further in 2022
– WGC
* Customers on last leg of Lunar New Year preparations –
dealer
* Hong Kong, Singapore premiums steady
Jan 28 (Reuters) – Top Asian hubs saw firm demand for
physical gold this week in the run up to the Lunar New Year
holiday, while buyers in India held off making purchases before
the government announces its annual budget.
India’s budget for the next fiscal year will be presented on
Feb. 1. New Delhi cut the import tax on gold in its 2021/2022
budget.
“People are speculating that the government might change the
duty structure like last year,” said Ashok Jain, proprietor of
Mumbai-based gold wholesaler Chenaji Narsinghji.
Volatile domestic gold rates were also prompting potential
buyers to postpone purchases, said a Mumbai-based bullion dealer
with a bullion importing bank.
Dealers offered discounts of up to $3 an ounce over official
domestic prices inclusive of 10.75% import and 3% sales levies
up from last week’s $2.5 discounts.
India’s gold consumption is expected to rise further in 2022
after jumping 79% last year as pent-up demand and an improvement
in consumer confidence are seen boosting retail jewellery sales,
the World Gold Council (WGC) said on Friday.
In top consumer China, premiums widened to $4-$7 an ounce
over benchmark spot gold rates. Hong Kong saw premiums
stable at $0.50-$2.00.
Inflation worries could help demand even after Lunar New
Year festivities, Peter Fung, head of dealing at Wing Fung
Precious Metals said.
China’s net gold imports via Hong Kong surged in 2021 as
consumers stocked up on bullion to shield against economic
risks.
The country’s gold jewellery demand is expected to be
supported by stable gold prices in 2022, an official of the WGC
said on Friday, despite fears of slowing economic growth.
Singapore dealers charged $1.50-$1.80 per ounce premiums
over the global rates, unchanged from last week.
Customers are making final preparations for next week’s
celebrations, said Brian Lan, managing director at dealer
GoldSilver Central, adding clients were looking to buy small
bars as gifts for immediate relatives.
In Japan, dealers charged premiums of $0.25.
(Reporting by Rajendra Jadhav in Mumbai, Asha Sistla and Bharat
Govind Gautam in Bengaluru; Editing by Kirsten Donovan)
