IGI Logo

Physical gold demand in India improved slightly this week as a price pullback lifted buying interest among consumers, while activity in other top Asian hubs remained lacklustre.

Gold prices in India closed at 99,838 rupees ($1,139.61) per 10 grams on Thursday after hitting a record high of 102,250 rupees last week.

"Many retail consumers are waiting for a price correction, but with prices steady around 100,000 rupees for the past few months, some buyers have begun purchasing," said a Mumbai-based jeweller.

Indian dealers offered discounts of up to $6 per ounce to official domestic prices, inclusive of 6% import and 3% sales levies, compared with an up to $9 discount to a premium of $2 last week.

Jewellers placed healthy orders with manufacturers at the India International Jewellery Show for the upcoming festival season despite elevated prices, said a Mumbai-based bullion dealer with a private bank.

Indians will celebrate the Dussehra and Diwali festivals in October, when buying gold is considered auspicious.

In top consumer China, bullion changed hands anywhere between discounts of $7 to a $6 premium an ounce over the global benchmark spot price.

"Physical gold demand in Asia remains mixed. The jewellery sector continues to struggle under the weight of high prices... with no new import quotas announced, actual physical demand from Chinese traders appears to be more limited," said Bernard Sin, regional director of Greater China at MKS PAMP.

"Tariff news sparked and reversed. No major gold relocations or withdrawals were seen."

U.S. President Donald Trump said on Monday he would not impose tariffs on gold, ending days of speculation that the metal could be caught up in the ongoing global trade spat.

In Hong Kong, gold was sold at par to a premium of $1.60, while in Singapore, gold traded between at-par prices and a $2 premium.

In Japan, bullion was sold at a discount of $0.50 over spot prices, according to a Tokyo-based trader.

($1 = 87.6070 Indian rupees)