Consumer demand for physical gold strengthened across key Asian markets this week, driven by a pullback in global prices that spurred renewed interest from buyers.
In India, dealers offered discounts of up to $34 per ounce over official domestic prices—adjusted for a 6% import duty and 3% sales tax—widening from last week’s discount of up to $16.
“Demand was better this week compared to last, thanks to the price drop. But a lot of buyers are still waiting it out, hoping prices dip even more,” said a bullion dealer based in Kolkata.
Domestic gold prices in India hovered around ₹92,900 per 10 grams on Friday, down from an all-time high of ₹99,358 recorded last month. A bullion trader with a private bank in Mumbai suggested further price easing could unleash pent-up demand.
“Prices need to settle down a bit. If gold drops another ₹2,000 and hovers around ₹90,000, we could see demand really take off,” the Mumbai dealer noted.
On the international front, spot gold traded at $3,216.17 per ounce as of 04:34 GMT on Friday. It fell to a more than one-month low of $3,120.14 on Thursday and is on track for its largest weekly decline since November.
In China, the world’s top gold consumer, dealers charged premiums ranging from $9 to $50 per ounce over the global spot benchmark, slightly broader than last week’s range of $42 to $49.
“The correction in gold prices has for sure encouraged some bargain hunting and a good entry point for those who may have missed the move higher,” said independent analyst Ross Norman.
A research note from ANZ predicted that jewellery demand would stabilise in the coming quarters, while retail investment demand could remain robust due to gold’s strong investment appeal.
Premiums in other key hubs also reflected steady demand. In Hong Kong, gold was sold at par to a $2 premium, while in Singapore, it traded at par to a $2.50 premium. Japanese dealers reported premiums of $0.25 to $0.50 per ounce.
“Purchases from the general public have been strong as prices dropped,” a Tokyo-based trader said.
