Gold prices retreat, boosting Indian demand; physical gold demand is now marginally recovering

Hot Topics

            My Stocks
Data Center
Market Center
Capital Flow
Simulation Trading
        

        Client

Source: Zhitong Finance

This week, gold demand in India saw a slight rebound due to softening gold prices, attracting some buyers, but most consumers remain cautious, waiting for prices to dip further; meanwhile, due to slowing physical demand, the gold premium in the Chinese market has narrowed.

This week, discounts offered by Indian gold traders reached up to $61 per ounce (compared to the domestic official gold price), narrowing from last week’s discount of up to $75. The above prices include a 6% import tax and a 3% sales tax.

At the same time, spot gold experienced significant fluctuations, consolidating between $4,100 and $4,600 per ounce. Influenced by the strengthening dollar and rising hawkish expectations for U.S. monetary policy, gold prices touched a four-month low of $4,097.99 on Monday.

A jeweler from Kolkata stated, “The price drop is helping reignite interest in gold. However, the current price level is still far above last year’s, and many buyers are delaying purchases, hoping for a larger decline.”

This Friday, the domestic gold price in India was reported at approximately 141,000 rupees per 10 grams, having previously surged to 169,880 rupees earlier this month.

A trader from a private bank in Mumbai pointed out that fluctuations in the rupee and instability in international gold prices have left jewelers generally on the sidelines, with many planning to wait until the fiscal year ends to restock.

In China, the world’s largest gold consumer, the premium for gold this week compared to international benchmark prices was $14 to $18 per ounce, narrowing from last week’s $10 to $22.

Bernard Sin, Regional Director of MKS PAMP Greater China, stated, “The declining premium reflects that physical demand has cooled, but central bank purchases and quota restrictions continue to support the market.” He added that the unresolved Middle East conflict has weakened gold’s reputation as a safe-haven asset.

Bernard Sin further noted, “The differentiation in China is evident: despite global adverse factors suppressing gold prices, the domestic market remains resilient, supported by policy, cultural demand, and structural supply constraints.”

In other Asian markets, the physical gold trading price in Hong Kong ranged from par to a premium of $1.90; Japan’s gold price was in line with the spot price; while in Singapore, gold prices ranged from a discount of $0.50 to a premium of $3.50 per ounce.

 Sina Cooperative Large Platform Futures Account Opening Safe and Fast Guaranteed

Massive information, precise interpretation, all in the Sina Finance APP

Editor: Zhu Henan