* Key Indian gold shopping for competition did not revive gold demand
* China’s jewelry consumption slumped 65% in Q1- WGC
* China and Hong Kong closed for Labour Day vacation
* Benchmark spot gold costs on observe for worst week in six
BENGALURU/MUMBAI, Might 1 (Reuters) – Bodily bullion demand was regular in Singapore this week as traders sought cowl from financial uncertainties as a result of coronavirus, whereas exercise wound down in prime hub China forward of a public vacation.
Sellers in Singapore offered gold at common premiums of about $1.50 an oz. over benchmark spot costs.
“The world is starting to rely the injury in the true financial system from the lockdowns and the true losses of jobs and enterprise closures can’t be solved by central financial institution cash printing this time,” mentioned Vincent Tie, gross sales supervisor at Silver Bullion.
“Given this bleak outlook within the close to time period, traders are shopping for gold anticipating larger costs.”
Nevertheless, restrictions stored consumers away from retailers, leading to elevated premiums on retail gold, merchants mentioned.
There’s safe-haven demand, “however persons are holding onto what gold they’ve proper now,” mentioned Spencer Campbell, director at SE Asia Consulting Pte Ltd.
International spot costs fell beneath $1,700 an oz. en path to their worst week in six as economies eased lockdowns.
There has additionally been good demand for platinum just lately, mentioned Brian Lan, of Singapore vendor GoldSilver Central, including nevertheless that liquidity was skinny.
In China, bullion was nonetheless offered at hefty reductions of about $48 an oz.. Exercise in each China and Hong Kong was additional muted as a result of Might day holidays.
“Demand remains to be weak, however the promoting strain has eased a little bit. Individuals who maintain gold don’t wish to clear their shares,” mentioned Samson Li, a Hong Kong-based treasured metals analyst at Refinitiv GFMS.
Whereas most retailers and sellers reopened, order books had been skinny, Li added.
The World Gold Council mentioned on Thursday that China’s jewelry consumption, which slumped 65% within the first quarter of this yr, may discover help within the second quarter and past from authorities insurance policies and promotions by jewellers.
In India, bodily buying and selling remained on maintain as a result of nationwide lockdown, and a key gold shopping for competition of Akshaya Tritiya on April 26 failed to assist revive urge for food for the steel.
“Regardless of all of the hype, solely a handful of consumers made on-line purchases. Most potential clients averted on-line shopping for resulting from volatility in costs and the uncertainty over supply after the lockdown,” mentioned a Mumbai-based vendor with a non-public bullion importing financial institution.
In Japan, gold was offered at anyplace between at par with the benchmark to a $0.50 an oz. premium. (Reporting by Asha Sistla and Ok. Sathya Narayanan in Bengaluru and Rajendra Jadhav in Mumbai; modifying by Arpan Varghese and Susan Fenton)