Gold Price Dip Lures Some Buyers In India, Demand Sags Elsewhere

Demand usually picks up in the state of Kerala during the festival of Onam, which was celebrated earlier this week.

However, “this year, Onam sales were far less than usual. The slowdown in the economy has reduced consumers’ purchasing power,” said B Govindan, chairman of Kochi-based Bhima Jewellery.

Dealers offered discounts of up to $40 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, easing from last week’s $43, a five-month peak.

In Singapore, premiums of $0.80-$1.50 were charged, Brian Lan of dealer GoldSilver said, adding buying came mostly from investors.