Gold Premiums Rise in India Amid Supply Crunch, China Buying Picks Up

Gold Premiums in India rose to their highest level in more than 2-and-a-half months this week, as supply remained tight, as per news reports.  

Import flows were disrupted earlier in April when banks paused gold and silver shipments due to a delay in a government authorisation order. This led to consignments being held at customs, reducing immediate availability in the domestic market. 

Even after the order was issued, imports have not resumed fully. Market participants pointed to uncertainty over the applicable tax structure, which has kept banks cautious about bringing in fresh supplies. 

Shift from Discounts to Premiums 

Dealers quoted premiums of up to $15 an ounce over official domestic prices, inclusive of 6% import duty and 3% sales levies. This is the highest level seen since early February. 

This marks a change from the previous week, when the market saw both discounts of up to $4 an ounce and premiums of $14. The rise in premiums reflects tighter supply conditions rather than a clear increase in consumption. 

Demand After Akshaya Tritiya 

Gold buying during Akshaya Tritiya on 19 April, usually a key period for purchases, was lower than expected. High prices limited retail activity across several markets. 

Domestic gold prices were around ₹151,200 per 10 grams on Friday, after touching ₹155,065 in the previous week. Buying has slowed after the festival, with some jewellers indicating that demand may improve if prices fall below ₹150,000. 

China Sees Higher Premiums 

In China, premiums rose to $9-$12 an ounce over global benchmark prices, compared with $3-$6 in the previous week. The increase points to stronger physical demand in the market. 

Buying interest picked up as prices stabilised around $4,700 levels, leading to firmer premiums, particularly in Shanghai. 

Other Asian Markets Remain Steady 

Across other Asian centres, price movements were limited. In Hong Kong, gold traded between flat rates and premiums of up to $1.80 an ounce. Japan saw prices largely at par with spot levels. 

In Singapore, gold traded between discounts of $0.50 and premiums of $1.80, compared with premiums of $1 to $3 a week earlier. 

Read More: RBI Data Shows 24% Drop in NRI Deposit Inflows to $11.04 Billion in April-February 2026! 

Conclusion 

Tighter supply has pushed up premiums in India, while demand remains uneven. China has seen a pickup in buying, whereas other Asian markets have shown little change. 

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