In India, dealers were offering discounts of up to $34 per ounce on official domestic prices—which include a 6% import tax and 3% sales levy—compared to discounts of up to $16 last week. The widening discount reflects increased market activity following a recent decline in prices.
“Demand was stronger this week thanks to the price drop,” said a bullion dealer based in Kolkata. “But many buyers are still holding out, hoping prices will fall further.”
Gold was trading around ₹92,900 per 10 grams on Friday, down from a record high of ₹99,358 reached last month. According to a Mumbai-based bullion dealer at a private bank, demand could accelerate significantly if prices fall to around ₹90,000 per 10 grams. “Prices need to stabilize. If gold drops another ₹2,000, we may see a sharp rise in demand,” the dealer noted.
Spot gold was trading at approximately $3,216.17 per ounce as of 0434 GMT on Friday. The metal hit 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 largest gold consumer, dealers were charging premiums of $9 to $50 per ounce over global benchmark prices, compared to last week’s range of $42 to $49. The wider spread signals continued demand despite the price volatility.
“The correction in gold prices has definitely triggered some bargain hunting,” said independent analyst Ross Norman. “It presents a good entry point for those who missed the earlier rally.”
Australia and New Zealand Banking Group (ANZ) expects retail investment demand to remain robust. “We anticipate jewellery demand to stabilize in the coming quarters, while retail investment demand will likely stay strong given gold’s compelling investment case,” ANZ noted in a client report.
In other key Asian markets, gold was sold at par to a $2 premium in Hong Kong, and at par to a $2.50 premium in Singapore. In Japan, bullion traded at a modest premium of $0.25 to $0.50.
“Purchases from the general public have been solid as prices retreated,” said a Tokyo-based trader, reflecting a broader regional trend of renewed consumer engagement following the price dip.
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