BENGALURU/MUMBAI (Reuters) – Physical gold was sold at a premium in India this week for the first time since mid-August as jewellers stocked up, hoping key festivals would bring customers back to stores.

FILE PHOTO: A salesman shows a gold necklace to customers at a jewellery showroom in Ahmedabad, India, Oct. 25, 2019. REUTERS/Amit Dave

Indians will celebrate Dussehra in late October and Diwali and Dhanteras in November, when buying gold is considered auspicious.

“Industry is banking on festivals for demand revival. Jewellers would be happy even if they manage to sell 50% of the last year,” said a Mumbai-based dealer with a bullion importing bank.

Dealers charged premiums of $2 an ounce over official domestic prices, inclusive of 12.5% import and 3% sales levies, versus last week’s $6 discounts. Local gold futures traded around 50,550 rupees per 10 grams on Friday.

“Jewellers have started making purchases for festivals,” said Chanda Venkatesh, managing director of CapsGold, a bullion merchant based in the southern city of Hyderabad.

“Retail buyers have been delaying purchases for the last few months. Jewellers are hopeful they will start buying during the festivals.”

In neighbouring Bangladesh, some people resorted to selling gold with the coronavirus outbreak having shuttered businesses and choking incomes.

“As per our records, around 20,000 families sold ornaments since late March,” said Enamul Haque Khan, president of the Bangladesh Jewellers Association.

Markets in top consumer China were closed for a week-long national holiday that ended Thursday.

Gold was sold at a discount of $30-$32 an ounce on Friday, when markets reopened, said Peter Fung, head of dealing at Wing Fung Precious Metals.

In Singapore, premiums eased slightly to $0.80-$1.40 an ounce, from $0.80-$1.50 last week. [GOL/]

“Prices have gone up a bit. We did get some inquiries, but

Goldman Sachs


  • Goldman Sachs’ chief Asia economist Andrew Tilton told CNBC’s “Street Signs Asia” he is “reasonably upbeat” on the economic recovery going into 2021. 
  • He said: “We think Asia’s really the best positioned of the major regions right now, just given the good control of the virus in most of the regions outside of India and some parts of Southeast Asia.”
  • He said purchasing managers indices were better in September, suggesting momentum in the industrial sector remained strong. 
  • He said a fiscal deal in the US between Republicans Democrats would bolster growth in Asia.
  • A blue wave scenario where a Democratic president takes control of both the House and Senate would bolster growth but may also “pull forward” the timing of the next Fed rate hike,” he said. 
  • Visit Business Insider’s homepage for more stories.

Asia is far better “positioned” to stage an economic recovery from the pandemic, Goldman Sachs’ chief Asia economist Andrew Tilton told CNBC’s “Street Signs Asia” Monday. 

Tilton said he is seeing “reasonable global momentum” going in the fourth quarter. 

“We think Asia’s really the best positioned of the major regions right now, just given the good control of the virus in most of the regions outside of India and some parts of Southeast Asia,” Tilton said. 

“We just had a round of purchasing managers indices which were almost all better month-on-month, suggesting that industrial sector momentum remains pretty good,” he added. 

Read more: A CIO who earned up to 90% per trade during the March crash offers his 2 best strategies for protecting against Trump-driven volatility – and says the president’s diagnosis will be the catalyst for a further sell-off

China’s huge manufacturing sector continued to recover in September, affirming the world’s second largest economy is recovering from the pandemic. 

Tilton

  • Economies in Asia are set to benefit as China’s shows a strong rebound from the coronavirus pandemic, says Invesco’s David Chao.
  • In particular, the focus is on “whether the Chinese consumer can quickly return back to normalized activity,” Chao said.
  • Chao’s comments came after recent data showed China’s manufacturing activity expanded in September, pointing to a continued recovery for the world’s second-largest economy.



a man standing in front of a tall building: Pedestrians wearing face masks walk along a road in the Central Business District in Beijing on July 16, 2020.


© Provided by CNBC
Pedestrians wearing face masks walk along a road in the Central Business District in Beijing on July 16, 2020.

SINGAPORE — Economies in Asia are set to benefit as China’s shows a strong rebound from the coronavirus pandemic, says Invesco’s David Chao.

Loading...

Load Error

“China’s economic recovery will lift surrounding Asian economies to a certain extent,” Chao, global market strategist for Asia Pacific at the firm, told CNBC’s “Street Signs Asia” on Monday.

In particular, the focus is on “whether the Chinese consumer can quickly return back to normalized activity,” Chao said. “I think that the Chinese will have much more impact … on boosting other Asian economies.”

The strategist added, however, that the extent of recovery this time around is unlikely to be on par with 2010, when China’s fiscal stimulus “grabbed other Asian economies by the boot straps.”

Chao’s comments came after recent data showed China’s manufacturing activity expanded in September, pointing to a continued recovery for the world’s second-largest economy. In August, the country reported its first positive retail sales report for the year so far, though online sales growth for consumer goods and services in that month slowed. 

Video: Asian bond yields are ‘still positive’: Asian Development Bank (CNBC)

Asian bond yields are ‘still positive’: Asian Development Bank

UP NEXT

UP NEXT

Chao said his firm has observed “record numbers” in restaurant bookings as well as Chinese households

US futures sank with most Asian and European equities Friday after Donald Trump announced he and his wife had tested positive for coronavirus, throwing fresh uncertainty into the presidential election.

The news compounded the downbeat mood on trading floors, where investors were already feeling pessimistic over US lawmakers’ failure to pass a new stimulus bill.

“Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!” Trump tweeted in the early hours.

The president had taken a test after his close White House aide Hope Hicks had tested positive earlier in the day, meaning he will now have to go into quarantine just weeks before one of the most crucial elections the country has ever had.

His doctor Scott Conley said the couple intended to stay at the White House “during their convalescence”.

“Rest assured I expect the president to continue carrying out his duties without disruption while recovering, and I will keep you updated on any future developments,” he added.

The White House cancelled a planned campaign rally in the crucial swing state of Florida on Friday, and 32 days before the November 3 vote against Democrat Joe Biden, it also looked certain Trump would have to cancel a slew of other trips scheduled for this weekend and next.

The news sent Dow futures tumbling 1.9 percent, while the S&P 500 shed 1.9 percent. Safe-haven assets also rallied, with the Japanese yen — a go-to in times of turmoil and uncertainty — rose to 105 per dollar, from 105.60 earlier in the day.

The greenback climbed against higher-yielding currencies including the Australian dollar and South Korean won, while gold jumped more than one percent and oil prices continued their downward spiral.

Japan’s Nikkei sank 0.7 percent, reversing

Japanese stocks edged up Friday as they reopened after being shut down all the previous day by a technical fault, though markets across Asia were mixed in holiday-thinned trade with investors keeping an eye on stimulus talks in Washington.

After September’s sell-off, Wall Street got the new quarter off to a positive start as technology firms appeared to rediscover their mojo, helped by a dip in US jobless claims that provided hope for key non-farm payrolls data later in the day.

However, news that several big-name firms including Walt Disney, American Airlines and United had cut tens of thousands of posts, and that Americans’ personal income had dived, fuelled concerns about the outlook for the consumer-driven US economy.

The bigger-than-feared fall in income came as expectations dwindled that US lawmakers will have time to pass a new stimulus package before the November 3 presidential election.

“The data highlights the imperative of a new fiscal support package if consumption is not to derail the economic recovery in the fourth quarter,” said National Australia Bank strategist Ray Attrill.

“Yet overnight we have no sign of progress towards reconciliation between the Democrats and the White House, even though both sides continue to express optimism on the ability to reach a compromise.”

Democrats pushed their latest $2.2 trillion proposal through the House, where they hold a majority, but without any opposition support, there is no chance it will be agreed by the Republican-dominated Senate.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held a series of talks Thursday to find a way through the deadlock but when asked whether a chance still remained for an agreement, Pelosi replied: “I don’t know.”

Georgetown University’s governmental affairs institute senior fellow Josh Huder said: “I can’t tell how much of this is genuine effort to pass