Gold Prices Dip to 1-Month Low, Boosting Demand in India and Asia.
Gold demand has picked up in India and several Asian markets this week after prices slipped to a one-month low, sparking fresh interest among buyers, according to a Reuters report.
India Sees Renewed Buying Interest
In India, 24-karat gold prices were trading around ₹97,700 per 10 grams on Friday—down from last week’s high of ₹1,00,555. While prices edged up again on Saturday following weak U.S. job data, the earlier drop prompted increased footfall at jewellery stores.
“This week, footfall was better than last week. Buyers were inquiring about price trends and making small purchases,” said a Pune-based jeweller.
Price corrections also led to a narrowing of dealer discounts, which fell to $7 per ounce over official domestic prices (inclusive of 6% import duty and 3% sales tax), compared to as much as $15 last week.
However, a weaker rupee offset some of the price advantage. “Jewellers were keen to restock, but currency depreciation limited the benefit,” said a Mumbai-based bullion dealer from a private bank.
Despite this week’s rise in interest, India’s overall gold consumption in 2025 is likely to hit a five-year low, the World Gold Council said, attributing the decline to record-high prices weighing down jewellery sales.
Gold Demand Trends in Asia
China:
Gold dealers quoted between a $4.20 discount and a $12 premium per ounce over international rates. Physical gold trading volumes on the Shanghai Gold Exchange also rose, indicating a “buy-the-dip” sentiment, according to trader Hugo Pascal at InProved.
Hong Kong:
Prices ranged from flat to a $1.50 premium per ounce.
Singapore:
Gold was sold at parity to a $1.40 premium.
Japan:
Dealers offered gold at flat rates or with a small $0.60 premium. “There was strong buying interest even with slight dips in prices. Gold is still seen as a reliable asset amid low interest rates,” said a Tokyo-based trader.
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