Gold demand in India remained subdued this week, as a recovery in prices led potential buyers to delay purchases. In contrast, premiums for gold in China remained steady, driven by safe-haven demand.
Spot gold prices climbed over 2 percent this week, aided by easing inflation fears and rising interest rates, as optimism grew around a potential US-Iran peace agreement. In India, gold was trading at approximately 152,600 rupees ($1,614.05) per 10 grams on Friday, marking a 57 percent increase over the past year.
Indian dealers reported discounts of up to $15 per ounce, along with premiums of $6 per ounce over official domestic prices this week. This compares to discounts of up to $5 and premiums of $9 the previous week, factoring in a 6 percent import duty and 3 percent sales tax.
“Retail demand is not picking up even though the wedding season is upon us. Higher prices are severely affecting purchases,” noted a jeweller based in Hyderabad. Weddings are a significant drive for gold purchases in India, with gold jewelry being a central element of a bride’s attire and often given as gifts from family and guests.
Additionally, April gold imports into India are projected to plummet to a nearly 30-year low of about 15 metric tons, according to industry and government sources, due to unexpected tax demands impacting banks.
In China, the leading global consumer of gold, premiums for bullion ranged from $14 to $20 per ounce above the global benchmark, remaining consistent with last week’s figures of $16 to $20. Chinese markets were closed for holidays from May 1 to 5, which curtailed trading activity.
The sustained premiums indicate that, despite higher gold prices, there remains a desire among consumers to invest in gold as a safe asset amid ongoing uncertainties in the Middle East and inflation concerns, according to Peter Fung, head of dealing at Wing Fung Precious Metals. Additionally, data from the People’s Bank of China revealed that the central bank increased its gold reserves for the 18th consecutive month in April.
In Hong Kong, gold traded at a discount of $0.50 to premiums of $2, while in Japan, gold was sold at discounts of $0.50 to $5.50. In Singapore, the precious metal was offered at discounts of $1 to premiums of $3.50.
($1 = 94.5450 Indian rupees)
Published on May 8, 2026.
