Physical gold demand in India slowed this week amid rising domestic prices and the conclusion of the wedding season, keeping buyers cautious. Meanwhile, premiums in China, the world’s second-largest consumer, eased as well.
Indian dealers were offering discounts of up to $31 per ounce compared to official domestic prices, which include 6% import duty and 3% sales tax—down from last week’s discounts of up to $49.
“The wedding season is wrapping up, and the monsoon has arrived, leading to an expected seasonal dip in demand. Jewelers are therefore holding off on fresh purchases,” said a Mumbai-based bullion dealer affiliated with a private bank.
Domestic gold prices in India stood around 94,900 rupees per 10 grams on Friday, after hitting a one-month low of 90,890 rupees earlier this month.
In China, gold traded close to the global benchmark spot price, with premiums ranging from par to $15 per ounce—down from $16 to $30 last week.
“Withdrawals from the Shanghai Gold Exchange have fallen to the lowest levels this year, while imports over recent weeks have surged, indicating a possible overstock in the domestic market,” said Ross Norman, an independent precious metals analyst.
Data from the Hong Kong Census and Statistics Department revealed that China’s total gold imports via Hong Kong nearly tripled month-on-month in April, reaching their highest level in over a year.
“Bullish gold bets remain dominant on the Shanghai Gold Exchange despite a drop in trading volume,” noted Hugo Pascal, a precious metals trader at InProved.
Elsewhere in Asia, gold premiums varied slightly: Hong Kong saw premiums between $0.30 and $1.30 per ounce, Singapore ranged from par to a $2.50 premium, and Japan traded bullion at par to a $0.50 premium.
