In a striking divergence in the global gold market, India has witnessed a surge in physical gold premiums, reaching a 10-month high, while China’s discounts have expanded to their lowest levels in five years. This development comes as gold prices in India hit a record high of 110,666 rupees per 10 grams earlier this week, settling around 109,500 rupees on Friday. Dealers in India are now offering premiums of up to $7 per ounce over official domestic prices, the highest since mid-November 2024, driven by robust investor demand ahead of the festive season. The Dussehra and Diwali festivals in October, traditionally auspicious times for gold purchases, have spurred retail buyers to re-enter the market. Conversely, in China, dealers are offering discounts of $21-$36 per ounce over global benchmark spot prices, the lowest since May 2020. Analysts attribute this to weak domestic demand as investors pivot to equities. Meanwhile, Swiss customs data revealed a 254% surge in gold exports to China in August, reaching their highest level since May 2024, signaling anticipated demand growth by the end of September. In other markets, gold in Hong Kong was sold at par to a $1.60 premium, while in Singapore, premiums ranged from par to $1.40. Japan’s bullion traded at par to a premium of $1, reflecting a sustained interest in gold as a valuable asset class.
Asia Gold: India premiums hit 10-month high as festive season draws near; China discounts widen
