India Gold Demand Subdued on Price Expectations; China Premiums Hold Steady

Gold demand in India was sluggish last week due to buyers holding back purchases in anticipation of lower prices. Domestic gold prices hovered around 153,000 rupees per 10 grams on Friday, after dipping to 149,771 rupees earlier in the week.

Jewellers in Hyderabad said jewellery demand was weak, with retail buyers reluctant to buy at current price levels and waiting for a correction. Dealers quoted a discount of up to $60 an ounce over official domestic prices, down from a discount of up to $75 in the prior week.

Meanwhile, in China, bullion traded at a premium of $5 an ounce to the global benchmark price, compared with $8 in the previous week. Independent analyst Ross Norman described the situation as reflecting strong investment demand alongside weak jewellery demand.