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Indians and Chinese hang on to their gold as futures prices rise

With futures at six-year high, world's biggest buyers of the metal lose interest

Local gold prices have even become higher as China's yuan and India's rupee weakened. In India, dealers offer a discount of $15 per ounce over official domestic price to jewelers, their primary customers, to boost demand.   © Reuters

TOKYO/NEW DELHI/HONG KONG -- President Donald Trump's latest tariff salvo as well as the first rate cut in the U.S. in more than a decade are conspiring to boost the price of gold futures but dampening demand for physical gold among individuals in Asia.

Gold futures on the COMEX market in the U.S. surged to a six-year high of $1,522 per ounce early this month after China and America intensified their diplomatic and trade battles. By contrast, the dollar index, which measures the value of the U.S. currency against a basket of its peers, fell to 97.5 in the first week of August, down 1 point from the end of July.

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