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01-04-2026
Bureau Report
NEW DELHI: Gold demand in India saw a slight uptick this week as softer bullion prices attracted some buyers, though many remained cautious and held off for further price drop, while premiums in China narrowed as physical demand slowed.
Bullion dealers in India offered discounts of up to $61 per ounce over official domestic gold prices this week, down from as much as $75 last week. These prices include 6% import duty and 3% sales tax.
Meanwhile, spot gold experienced volatile trading, flitting between $4,100 and $4,600 per ounce. Prices briefly touched a four-month low of $4,097.99 on Monday, pressured by a stronger dollar and growing expectations of hawkish US monetary policy.
“Falling prices are helping revive interest in gold. However, prices remain well above levels seen last year, and many buyers are postponing purchases in hopes of a bigger fall,” a Kolkata-based jeweler said.
Gold prices in India were trading around 141,000 rupees per 10 grams on Friday, after rising to 169,880 rupees earlier this month.
Volatility in the rupee and global prices left jewelers sidelined, with many waiting until the financial year-end to make fresh purchases, said a Mumbai-based dealer with a private bank.
In Singapore, gold was sold at prices ranging from a discount of $0.50 to premiums of $3.50 an ounce.
Singapore set out plans on Friday to turn the city state into a gold trading hub for the whole of Asia, with regulators and industry players working together to strengthen the market’s trading, clearing and storage infrastructure.
In top consumer China, bullion traded at premiums of $14-$18 an ounce over global benchmark prices this week, narrowing from a $10-$22 premium last week.
“Physical demand has cooled, reflected in lower premiums, but the market remains underpinned by central bank buying and quota restrictions,” said Bernard Sin, regional director of Greater China at MKS PAMP, adding that the unresolved Middle East conflict has tarnished gold’s reputation as a safe-haven asset.
“China’s divergence is clear; while global headwinds weigh on gold, domestic resilience persists, sustained by policy, cultural demand and structural supply constraints.”
In Hong Kong, physical gold traded at par to premiums of $1.90, while in Japan, gold was sold at par with spot prices.
In China, gold traded at $14–$18 per ounce over global benchmarks, down from $10–$22 last week, signaling softer physical demand. Market experts attribute the cooling to lower investor appetite for bullion bars and coins, even as jewelry sales in traditional and 3D hard-gold designs remain brisk. Structural factors like central bank buying and import quotas continue to underpin the market despite global headwinds
Geopolitics and policy drive price swings
Despite heightened Middle East tensions, gold prices have retreated sharply from highs above $5,500 earlier this year due to liquidity needs, a stronger dollar and interest rate fears. Investors have sold bullion to raise cash as oil market disruptions fuel demand for US dollars. Analysts warn that until US Federal Reserve policy becomes clearer, gold may remain range-bound despite sporadic rebounds.
Future scenarios for global gold demand
Analysts note that recent upticks are being treated as technical rebounds rather than a trend change, with dips seen as buying opportunities. Some global forecasts project gold prices could move towards $6,000–$6,300 within the next year.
