International News 02/09
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Demand depressed, gold sellers in India offer discounts of up to 8%
Gold discounts in India have reached a six-week high as demand drops due to rising prices and new import quotas failing to boost purchases from China. India, the world's second-largest gold consumer, priced gold at 71,900 rupees per 10 grams on Friday, an increase from the four-month low of 67,400 rupees on July 25. Jewelers had been active in the market when prices were below 70,000 rupees, taking advantage of government cuts on import duties. However, they are no longer buying. Indian traders are now offering discounts of up to $8 per ounce above the official price, higher than the previous week's $6 discount. Chinese traders are also offering discounts of $1-$10 per ounce, compared to $3-$18 last week. Both countries have seen declining retail demand due to high prices and poor consumer sentiment. Retail buyers are waiting for prices to stabilize before making purchases.
Thai Rice Export Prices Hit Record High in Two Months
This week saw Thai rice export prices reach a two-month high, driven by the strengthening of the baht. The price of Thai rice with 5% broken quality increased to $580 per ton, up from $570 per ton the previous week. This increase was attributed to the appreciation of the baht. Despite the price increase, there were no concerns about supply as orders were fulfilled as scheduled. In Bangladesh, the flooding has given rise to concerns about the availability and price of rice. It was anticipated that the floods would have an adverse effect on crop production and supply across the country. The latest figures show that 23 people have lost their lives as a result of the flooding. The price of 5% broken rice in Vietnam remained at $578 per ton. In advance of a lengthy holiday period, trading activity was subdued as market participants awaited the outcome of auctions conducted by Bulog, Indonesia's state-owned logistics agency.