Gold was sold at a discount in India for the first time in seven weeks, as demand waned following the festive season, while premiums rose across other major Asian hubs amid improved investor activity.
Indian dealers offered discounts of up to $12 per ounce over official domestic prices, including taxes, compared to last week’s premium of $25, as demand slowed after Dhanteras and Diwali — two key gold-buying festivals. “Price volatility has slowed demand, and some investors are cashing in by selling coins they bought for a profit,” said Ashok Jain, proprietor of Mumbai-based wholesaler Chenaji Narsinghji.
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Domestic gold prices eased to around ₹121,500 per 10 grams, down from a record ₹132,294 earlier this month, while global spot gold was heading for its second consecutive weekly decline. Jewellers reported a noticeable drop in footfalls post-festival, causing them to scale back on stock purchases ahead of the upcoming wedding season, a Mumbai-based private bank dealer said.
In China, gold traded between par and a $4 premium an ounce over the global benchmark, rebounding from last week’s range of $20 discount to $8 premium. Singapore saw premiums of up to $3, while Hong Kong dealers offered gold at par to a $1.6 premium. “We’ve seen investors coming to buy, especially when prices came down this week,” said Brian Lan, managing director at GoldSilver Central in Singapore.
In Japan, gold was sold at a modest $1 premium over spot prices, reflecting steady but cautious buying interest amid the global price dip.