Physical gold premiums in India experienced a rise, reaching a 10-month high this week, as record prices approaching a festive season did not deter investors from purchasing bullion in anticipation of further price increases. Meanwhile, discounts in China expanded to a five-year high.
On Friday, gold prices in India were approximately ₹1,09,500 ($1,240.09) per 10 grams, following a peak of ₹110,666 earlier in the week. A bullion dealer based in Chennai noted, “The rally just made people even more sure gold will keep climbing, so they were snapping up coins and bars.”
This week, Indian dealers quoted premiums of up to $7 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, marking the highest premium since mid-November 2024. This compares to last week’s scenario where discounts of up to $6 were offered along with a premium of $2.
Retail buyers, who had previously adopted a wait-and-see approach in hopes of a price correction, are now resuming their purchases ahead of the festive season, a Mumbai-based bullion dealer associated with a private bank observed. The upcoming Dussehra and Diwali festivals in October are particularly auspicious for gold purchases in India.
In China, the top consumer of gold, dealers are currently offering discounts ranging from $21 to $36 per ounce over global benchmark spot prices, the widest discount since May 2020. This represents an increase from last week, when discounts ranged from $17 to $24. Independent analyst Ross Norman commented, “Gold premiums in China have been on the slide over the last six months due to weak domestic demand, as investors are shifting their focus to equities.”
Recent customs data from Switzerland indicated a 254% increase in gold exports to China in August compared to July, reaching their highest level since May 2024. Analysts attribute this surge to anticipated demand increases by the end of September.
In Hong Kong, gold was sold at par to a $1.60 premium, whereas in Singapore, premiums ranged from par to $1.40. In Japan, bullion traded at par to a premium of $1, with a trader noting, “Local retailers love to buy gold as a great asset class, and this trend will keep going.”
($1 = 88.3002 INR)
Published on September 19, 2025
