LONDON (Scrap Register): The gold premium is reflecting on improved demand in the key gold-consuming nations of China and India
According to Commerzbank, gold demand appears to be picking up again in India after a prolonged dry spell. Analysts cited a Platts data showing that gold prices in India traded at a premium to world market prices at the end of last week for the first time in nearly three months.
“The stronger Indian gold demand is probably attributable to the upcoming Diwali holiday that will be celebrated next week – a festival that traditionally sees a lot of gold given as gifts,” the bank added.
Meanwhile, MKS (Switzerland) S.A. pointed out that the premium has risen in China. China’s currency strengthened against the U.S. dollar.
The currency moves saw the on-shore premium relative to loco London gold add further gains, increasing toward $14 from around $10 on Monday to buoy spot demand to $1,288.10 high, analysts at MKS added.