Physical gold demand in India remained robust this week, despite soaring prices, as jewellers and investors took advantage of the upcoming festivals later this month. Conversely, demand in China was muted following the holiday period due to elevated prices.
In Hong Kong, residents took to selling various gold items, including bars and rings, to benefit from the record price surge. As of Wednesday, spot gold prices surpassed $4,000 per ounce for the first time, driven by broader geopolitical and economic uncertainties, along with expectations of interest rate cuts in the U.S.
With Dhanteras and Diwali approaching, festivals during which purchasing gold is viewed as auspicious, Indian dealers reported premiums ranging from $15 per ounce over official domestic prices, up from $9 the previous week, incorporating 6 percent import and 3 percent sales taxes. A bullion dealer in Mumbai noted, “Investment demand is really strong right now. Expecting prices to rise further, investors didn’t mind paying extra even over record high prices.”
On Friday, domestic gold prices hovered around ₹1,21,000 ($1,364.10) per 10 grams, following a peak of ₹1,23,677 earlier in the week. While retail jewellery demand remains sluggish, jewellers are anticipating an uptick next week as Diwali approaches, a dealer from New Delhi reported.
In China, gold demand was lackluster after an extended holiday, with discounts of $48 to $60 an ounce being offered to attract buyers. Peter Fung, head of dealing at Wing Fung Precious Metals, remarked, “People are investing in gold bars and coins as safe havens, but jewellery demand has been low. People are looking to buy, but they are waiting for prices to come down.”
In Hong Kong, gold was sold at discounts ranging from $0.5 to premiums of $1, while in Singapore, it traded between a discount of $0.5 and a premium of $1.30. In Japan, bullion was sold at par to a premium of $1 per ounce over spot prices.
Published on October 10, 2025.
