(MENAFN- Khaleej Times) Gold demand picked up in most Asian centres this week as prices of the yellow metal slid to a six-month low, with gold being sold at a premium in India for the first time in seven weeks.
Spot gold touched its lowest since December 19 at $1,260.84 an ounce on Thursday, weighed down by outlook for higher interest rates in the US and as the dollar climbed to an 11-month peak.
"Demand has improved slightly due to the correction, but still many buyers are waiting for prices to fall further," said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
Prices, however, edged up on Friday from six-month lows as the dollar slipped but the modest nature of the recovery suggested speculators might still be poised to punish the metal further.
In the Indian market, gold futures were trading at around ?30,562 per 10 grammes, down nearly three per cent from last week's peak of ?31,424. Dealers in India were charging a premium of up to $1 an ounce over official domestic prices this week, for the first time since the week of May 4.
In Singapore, premiums charged this week rose slightly to a range of 80 to $1 over benchmark spot, from the 60 to $1 range last week. In Japan, gold was being sold at a premium of about 25 this week after being sold at par with the global benchmark for several weeks.
In top consumer China, however, premiums were unchanged from the previous week at $5-$6 an ounce as demand remained quiet amid a weaker yuan, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Premiums in Hong Kong ranged between 50 and $1.20 this week, little changed from last week's 60 to $1.30 range.
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