Author: Paul Ploumis06 May 2015 Last updated at 08:18:19 GMT
MUMBAI (Scrap Monster): The gold premiums in Mumbai remained mostly unchanged during the week. The premiums continued to remain in the range from $1 to $2 per ounce during the week over London spot prices. Meantime, restrained gold demand across other Asian markets resulted in no major change in premiums.
According to Metal Focus, the gold demand continues to remain subdued in the country. The stagnant gold premiums are a clear indicator of falling gold demand in the country. The country had imported as many as 125 tonnes of gold during the month of March. The domestic inventory of gold still remains high. Although, gold imports surged during the initial week of April, the monthly gold import during the entire month is likely to cool off significantly when compared with March.
The gold demand remained muted during Akshaya Tritiya season this year. According to Indian Meteorological Department, country is likely to receive less monsoon rains this year. The Department has predicted that the country is expected to receive only 93% of the long term average in 2015, as compared with usual range of 96% to 104%. A lesser-than-normal monsoon may weigh on rural gold purchases. As per estimates, rural population accounts for 60% of the gold consumption in the country. Weaker monsoon is feared to adversely affect the country’s agricultural output, which in turn may result in lesser gold consumption.
Elsewhere, spot premiums at Chinese Shanghai Gold Exchange remained steady in the range $1.5 to $2 per ounce over spot prices on 1 kilogram bars. The premiums in Hong Kong and Singapore remained lower at $1.20 per ounce each. Bangkok gold premiums continued to be around $1.50 per ounce. Meanwhile, the gold premiums in Dubai remained stagnant with local jewellers quoting bars at parity.