Indian dealers charge first gold premiums in two months


Gold ‌traded at a premium in India this week for the ​first time in two months, as softer prices
boosted ⁠demand for the metal, while premiums in China ticked
down slightly as buyers awaited a deeper correction.

Dealers quoted discounts of up to $8 an ounce
and ‌premiums of $2 an ounce over official domestic prices this
week, inclusive of 6% import and 3% sales levies, compared ‌with
discounts of up to $61 last week.

“Falling prices are helping ‌bring ⁠back buyers. Retail buying
and jewellers’ purchases were stronger ⁠this week than last
week,” said Ashok Jain, proprietor of Mumbai-based gold
wholesaler Chenaji Narsinghji.

Domestic gold prices were trading around ₹146,700
per 10 grams on Thursday, after rising ​to ₹151,326 earlier this ‌week and a record high of ₹180,779 in late
January.

Scrap supplies have declined in recent weeks, prompting
jewellers to buy from banks, although volatile prices and the
rupee are keeping purchases small, ‌said a Mumbai-based bullion
dealer with a private bank.

In top ​consumer China, bullion traded at premiums of $12-$17
an ounce over the global benchmark price this
week, slightly down from $14-$18 ⁠last week.

“The demand for physical gold is steady as gold swings
between $4,400 and $4,700….when the market goes down to about
$4,200, we could see ‌some increase in demand,” said Peter Fung,
head of dealing at Wing Fung Precious Metals.

International spot gold prices dropped over 4% on
Thursday, retreating from a two-week high hit earlier in the
session, as the Middle East war rages on, fuelling concerns
around inflation and a hawkish monetary policy response.

“Gold jewellery sales remained soft in ‌the immediate
post-Chinese New Year period, but have begun a moderate
recovery, supported by ​low inventory levels and restocking
demand following the price correction,” Metals Focus said in a
note.

Investment flows cooled down ⁠in the last two months of
March after a solid start in the ⁠first two months of the year,
it added.

In Hong Kong, physical gold traded at par to
premiums of $1.80, while in ‌Japan , gold was sold
at par with spot prices.

In Singapore , gold was sold at prices ranging
from a $0.25 discount to a $1.80 ​premium per ounce.

Published on April 2, 2026