Gold has seen a dramatic upswing in sales in China and India, as China ends its Golden Week extended holiday and India gears up for its own holiday season. Chinese consumers increased their gold purchases, reflected in the sales data of retailers as the country concluded its week of celebration of the National Day patriotic holiday. Gold prices jumped to a six dollar premium on the Shanghai Gold Exchange in response to the uptick in domestic gold demand, up sharply from the more common three dollar premium as compared to the benchmark XAU index traded on the NASDAQ.
Some provinces of China saw gold bullion and jewelry sales increase significantly as Golden Week certainly lived up to its name.
Demand from those looking to buy rare gold coins, gold bullion and jewelry has been increasing in India as well, the world’s second largest consumer of the yellow metal. With the Indian wedding and festival seasons on hand, the premium over XAU gold prices has increased to $15 an ounce, a sharp rise from the $7 premium of just a few weeks ago. With the Diwali and Dhanteras festivals just around the corner, Indian purchases of rare gold coins, jewelry and gold bullion should rise significantly in October.
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