Mumbai: Gold markets in Asia showed mixed trends this week, with India seeing a slight improvement in demand during the festive season while China reported softer buying interest.
In India, gold dealers reduced discounts to around 75 dollars per ounce, compared to about 83 dollars last week, which was close to a decade high. The easing of discounts comes as buyers returned to the market during festivals such as Gudi Padwa and Ugadi, when purchasing gold is considered auspicious.
Despite this seasonal support, overall demand in India remains subdued. Many jewellers are cautious with fresh purchases as the financial year comes to an end. Retail buying has improved slightly but is still below normal levels, as high price volatility in recent weeks has made consumers careful.
In China, gold premiums fell to between 10 and 22 dollars per ounce, down from 20 to 30 dollars last week. The drop reflects weaker short term demand in the world’s largest gold consumer. However, market experts say that underlying demand in China remains stable due to continued central bank buying and strong investor interest in gold.
Other major Asian markets showed steady conditions. Premiums in Hong Kong remained near zero, while Japan and Singapore recorded small premiums, indicating moderate and stable demand.
Globally, gold prices have declined more than 10 percent since late February. The fall is linked to a strong US dollar and expectations that interest rates will remain high, which reduces the appeal of gold as an investment. Ongoing geopolitical tensions have also influenced investor behaviour, with many shifting towards the dollar as a safe haven.
Market analysts say that while the recent fall in prices has encouraged some buying, demand across Asia is still uneven. India is seeing a mild recovery driven by festivals, while China is experiencing a temporary slowdown.
Overall, the gold market is going through a cautious phase, with buyers waiting for more stability in prices and clearer signals from the global economy.