Gold Prices Slide Amid Festive Buying

Lower gold prices have started to attract physical buyers in key Asian markets, particularly in India and Singapore. With prices dipping to their lowest level in nearly two months, demand has improved in these regions.

In India, gold prices dropped to Rs 145,538 per 10 grams this week, leading to increased buying interest. According to Harshad Ajmera of Kolkata-based wholesaler JJ Gold House, demand was better than last week as the price decline made buyers more interested and narrowed the discounts offered by sellers.

Discounts in India narrowed sharply during the week, with dealers offering discounts of as much as $14 an ounce over official domestic prices. Buying interest could strengthen further if prices remain around current levels, particularly with the festival season approaching.

In China, physical gold trade was above the global benchmark, with bullion fetching premiums of $5 to $10 an ounce. However, buyers remained closely focused on price movements, waiting for a further decline in international prices to support physical demand.