Asia Gold-China premiums near 3-yr high, Indian demand remains subdued
By GCRU Gold News on Saturday, December 10 2016, 01:56 - Permalink
Gold premiums in China held near three-year highs this week amid fears of limited supply of the precious metal, while demand in India remained subdued despite lower prices due to a severe cash crunch.
The import curbs may be part of China's efforts to limit outflows of the yuan after the currency's slide to its weakest in more than eight years, traders said. China allows only 13 banks to import gold, including three foreign lenders, according to the Shanghai Gold Exchange.
"The news on import restrictions is keeping the premiums high and there has been no real demand," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
China gold premium at $28-$30/oz this week