India Gold Discounts Hit Seven-Week High Amid Weakened Demand
India's gold market has experienced a significant downturn in demand, causing gold discounts to reach a seven-week high. Dealers are now quoting discounts of up to $56 an ounce over official domestic prices, compared to $45 last week.
The weak demand is attributed to the recent price rebound, which has deterred buyers from making purchases. A Chennai-based jeweller stated that 'footfalls at jewellery stores remain negligible' and retail buyers are waiting for a meaningful correction in prices before buying.
In contrast, China's gold market has seen an improvement in buying interest, with premiums ranging from $3 to $6 an ounce over the global benchmark spot price. This is attributed to increased physical demand and buying interest, with $4,000 acting as a good support level, according to Peter Fung, head of dealing at Wing Fung Precious Metals.