Physical gold in top consumer China was sold at a small premium for the first time since early 2020, as demand picked up ahead of the Chinese new year.
Publishing date: Jan 08, 2021 • January 8, 2021 • 2 minute read •
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BENGALURU/MUMBAI Physical gold discounts slipped to their lowest since June in top consumer China this week, as a stronger yuan encouraged some buying, while volatile prices slowed down buying in other Asian hubs.
Dealers in China offered discounts of $7-$10 an ounce to benchmark global prices, compared with last week’s $15-$20 discounts.
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Because of the stronger renminbi, we are likely to see more demand in China, Peter Fung, head of dealing at Wing Fung Precious Metals, said, adding that gold prices could flip to a premium of around $2-$3 by mid-year.