NEW DELHI/BEIJING, Gold premiums in India have fallen by more than half this week as volatile prices dampened buying interest, while demand in China strengthened ahead of the Lunar New Year, dealers said.
In India, the world’s second-largest gold consumer, local dealers charged premiums of around $70 an ounce over official domestic prices, down sharply from recent highs of about $153 an ounce. Market participants said rapid swings in global prices discouraged buyers, leading many to delay purchases.
Domestic gold prices in India had surged to record levels earlier in the week before easing, adding to uncertainty among consumers and jewellery retailers.
“Customers are waiting for prices to stabilise,” a Mumbai-based bullion dealer said, adding that the sharp volatility had reduced physical demand despite the wedding season.
By contrast, demand in China improved as buyers prepared for Lunar New Year celebrations, traditionally a peak period for gold purchases. Bullion in China was trading at premiums of around $30–35 an ounce, reflecting stronger interest in jewellery and investment bars as prices retreated from recent highs.
Dealers said Chinese consumers took advantage of the price pullback to make purchases ahead of the holiday, supporting premiums despite broader concerns over the economy.
Spot gold prices have remained volatile in recent sessions amid uncertainty over global interest-rate policy and safe-haven demand, influencing buying behaviour across Asia.
Asia accounts for a significant share of global physical gold demand, with trends in India and China often shaping broader market sentiment.
Originally Published By: Reuters
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