Gold markets in Asia present contrasting trends this week, as India's gold discounts hit a record high following an increase in import duties and subdued demand as per news report.
Meanwhile, China sustains firm premiums driven by robust investment and industrial consumption.
India is experiencing a significant rise in gold discounts, with dealers now offering up to $207 an ounce below official domestic benchmark prices. This is a substantial increase from the $15 an ounce discount noted last week.
The principal cause is an import tariff hike on gold and silver, raised to 15% from 6%. Additionally, new restrictions on duty-free imports for jewellery exporters, capping eligible shipments at 100 kg per licence, have raised domestic prices.
These policy changes have led to domestic gold prices climbing to ₹1,64,000 per 10 grams earlier this week before settling at around ₹1,60,000 per 10 grams.
However, rising prices have deterred purchases by jewellers and retail buyers, diminishing demand and redirecting scrap supply into the market.
At the same time, global factors are contributing to the pressure on bullion markets. Spot gold has decreased by about 2.8% this week as sustained energy price increases bolster inflation concerns, supporting expectations of prolonged high interest rates.
Read More: Import Duty Hike on Gold Explained: Government's Rationale Behind Making Gold Costlier and Impact on Buyers!
While India faces lower physical demand, China's gold market tells a different story. Premiums of $15–$20 an ounce over global benchmarks remain steady.
This is supported by strong investment and industrial demand, especially from the solar and electronics sectors.
Modifications in tax and export incentives have further boosted Chinese consumption, stabilising premiums.
In summary, the gold markets in Asia show divergent trends. India's record discounts are a result of increased import duties and weaker demand, while China's robust buying patterns have maintained steady premiums. Across other Asian markets, gold pricing varies, reflecting diverse regional dynamics in the bullion trade.
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Published on: May 16, 2026, 9:37 AM IST
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