Mumbai: Gold demand in Asia showed signs of recovery this week as prices pulled back from record highs, helping key markets such as India and China move from discounts to premiums.
In India, dealers began charging a premium of around 15 dollars per ounce over official domestic prices. This marked a sharp change from last week, when gold was sold at heavy discounts due to weak buying interest. Local traders said the fall in prices encouraged customers to return to jewellery shops and bullion counters.
Domestic gold prices in India had recently touched record levels, which slowed demand. As prices eased in the last few days, buyers stepped back in, especially retail customers and small investors.
China also saw a similar shift. Gold prices there moved to a small premium of about 3 dollars per ounce, indicating improved physical demand after the recent price correction. Market participants said buyers who had stayed on the sidelines during the rally were now taking advantage of lower prices.
Elsewhere in Asia, markets such as Singapore, Hong Kong and Japan reported mixed activity. Premiums were modest and trading volumes remained thin, partly due to seasonal factors and holidays. However, sentiment improved compared with the previous week when demand was more subdued.
Globally, gold remains strongly supported after a sharp rise in 2025, when prices posted their biggest annual gain in decades. Expectations of interest rate cuts by major central banks and ongoing geopolitical tensions continue to make gold attractive as a safe haven asset.
Analysts say short term demand in Asia may remain uneven, but the return of premiums in major consuming countries suggests underlying interest in physical gold is still strong when prices soften.
As 2026 begins, traders will be closely watching price movements and central bank signals to gauge whether Asian demand can stay firm in the weeks ahead.