Gold demand in India rose last week due to the festivals of Dhanteras (29 October) and Diwali (31 October), Commerzbank’s commodity analyst Carsten Fritsch notes.

Gold demand weakens again

“However, due to the record high prices, the increase was smaller than usual, as Gold traders reported. Taking into account the much higher price level, however, the value of sales was significantly higher, according to one trader.”

“The share of bars and coins in total sales was higher than usual, as many buyers were not willing to pay the increased production costs for Gold jewellery.”

“Towards the end of the week, demand apparently weakened again, which is why traders offered a discount of $5 per troy ounce on the official price. Just a few days earlier, they were still charging a premium of $1.”