Gold demand in India has been subdued this week, primarily due to a significant rise in prices. Meanwhile, China has maintained steady premiums, driven by safe-haven demand.
As of Friday, gold prices in India were trading around ₹1,52,600 ($1,614.05) per 10 grams, marking a 57% increase over the past year.
This price surge has led potential buyers to delay their purchases, even during the ongoing wedding season, which is traditionally a peak period for gold buying.
Dealers in India have been quoting discounts of up to $15 an ounce, compared to last week's $5.
In contrast, China's gold market has seen stable premiums ranging from $14 to $20 an ounce over the global benchmark price.
This consistency reflects a continued interest in gold as a safe-haven investment, amidst concerns about geopolitical uncertainties and inflation.
China's central bank has also been actively increasing its gold reserves for 18 consecutive months as of April.
Spot gold prices have risen by over 2% this week, as easing fears of inflation and higher interest rates have buoyed investor optimism regarding a potential US-Iran peace deal.
This global sentiment has influenced gold trading patterns across different markets.
Read More: India Gold Imports Tumble as Tax Dispute and Delays Freeze Bank Shipments!
While India and China have shown contrasting trends, other regions have also experienced varied gold trading dynamics.
In Hong Kong, gold traded at a discount of $0.50 to premiums of $2, whereas in Japan, discounts ranged from $0.50 to $5.50. Singapore saw gold sold at discounts of $1 to premiums of $3.50.
The current gold market scenario highlights the impact of regional economic factors on demand and pricing. While India's high prices have dampened demand, China's steady premiums indicate a sustained interest in gold as a secure investment option.
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Published on: May 8, 2026, 12:51 PM IST
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