Positive consumer sentiments towards gold buying in India and China

China’s physical gold exchange noted a rise in buying activity this week, after the week-long National Day holiday period in China, reports say. On the Shanghai Gold Exchange, where all physical trade is conducted in China, the gold prices were about USD 5- USD 6 an ounce higher, above the global benchmark, and also higher than USD 3 prices existing before the holiday, reports say.

The increased buying indicates a rise in retail sales during the holiday week, reports say. Also, with this, imports are expected to rise, reports add.

Low gold prices during the holiday time, which is referred to as the Golden Week, coupled with retailer promotions, encouraged consumer buying, reports say. Retailers are hopefully going to re-stock after the holiday period sales.

In India, buying is healthy, with the onset of the festive season, and gold premiums have risen from USD 7 to USD 12- USD 15 an ounce, reports say.