Beijing: Rising gold prices across Asia are discouraging many buyers in India, even during the busy wedding season, while demand in China continues to remain stable.
Gold prices in India recently climbed to very high levels, touching about ₹169880 for 10 grams before easing slightly to around ₹160000. Because of these high prices, many customers are postponing jewellery purchases and waiting for prices to stabilise.
Jewellers say the sudden increase has made gold too expensive for many households. India is usually one of the world’s biggest gold consumers, especially during weddings and festivals, but the surge in prices has slowed buying activity in many cities.
Traders also say supply disruptions have affected the market. Flight routes from the Middle East have been disturbed due to regional tensions, slowing the movement of gold shipments to India. As supply tightened, discounts offered by bullion dealers dropped sharply. Last week discounts were around 65 dollars per ounce, but they have now fallen to about 28 dollars per ounce.
In contrast, demand in China has remained steady. Gold in the Chinese market is trading at a premium of about 13 to 15 dollars per ounce above international prices. Analysts say Chinese investors continue to buy gold as a safe investment during uncertain global conditions.
Rising geopolitical tensions, especially in the Middle East, have pushed many investors around the world to move money into safe assets such as gold. The metal recorded strong gains earlier this year as investors looked for stability amid global uncertainty.
Across other Asian markets such as Hong Kong, Japan and Singapore, demand has been moderate, with premiums ranging from near zero to about 2.25 dollars per ounce.
Market experts say the current trend shows a clear contrast in Asia. High prices are keeping many traditional jewellery buyers in India away from the market, while investors in China continue to support steady demand for gold.